New Challenges, Same Mission

As Q1 begins, the Arrive team is laser-focused on executing our multi-year strategy for delivering sustainable growth. We do this by creating unparalleled operating efficiency and service standards that allow our stakeholders to focus on their core business. ?Before I discuss the year ahead, it is important to acknowledge the team's accomplishments from 2022. I am proud of our team for the leadership and commitment they continue to display as we navigate changing market conditions. 2022 had its fair share of obstacles, but ultimately, it was an incredibly successful year for the business and many in the transportation industry.

A Seismic Market Shift

At Arrive, we are confident that we can provide value and find success in any market. That was tested when deflationary conditions first set in during April of 2022. This shift was a clear reminder of how quickly and dramatically the landscape can change and pushed us to pivot to support our transportation partners.?

Adapting quickly to the market is one of our core strengths, but as any rapidly growing business knows, doing what you do best can become more challenging at scale. With nearly 2,000 employees across five offices managing well over $2 billion in freight for 1000s of shippers, we could have lost sight of the customer experience we are known for. Instead, with strong managers leading the way, teams leveraged technology and worked relentlessly to drive results for our partners despite market headwinds.

Delivering Support

As the market shifted, our team stepped up and delivered value for shippers and carriers who leaned on us for support. As an organization, we knew our shipper partners were increasing expectations for service as they consolidated their transportation partners in the softening market.? At Arrive, we reached 91% OTD to the minute in December 2022. While that is great, we will never be satisfied.?

Meanwhile, carriers were navigating record-high fuel and operating costs along with declining spot rates throughout the year. We provided consistent revenue opportunities for our network through dedicated freight opportunities and even launched "We Deliver Flexibility," a program that connected small fleets and owner-operators with private fleets to discuss partnership opportunities.?

Finding innovative ways to support shippers and carriers is a critical part of what we do at Arrive and years like 2022 remind us that our work is about more than just moving shipments from point A to B.?

Driving Growth and Scale

Delivering for our transportation partners resulted in exceptional outcomes for the business. Of the many highlights, a few that stand out to me are closing the year with $2.35 billion in annual revenue, moving 5,000 loads in a single day and over one million total loads (up 47% YOY) in a single year for the first time, growing our network to more than 70,000 carriers, surpassing 6,000 total shipper partnerships and receiving awards for customer service, technological innovation, and most importantly, our culture, leadership, workplace and team achievements.

Further, we entered last year with ambitious plans for expanding our services, technology and geographic footprint, and we moved the needle significantly in each area. From a services standpoint, the successful acquisition and integration of Forager significantly enhanced our cross-border operations. We also increased investments in drayage and LTL to provide additional support to shippers who utilize these critical modes through Arrive and our carrier network.?

As for tech, launching the ARRIVEnow brand, representing our proprietary suite of digital solutions, has doubled productivity on the sales floor and significantly improved predictability and visibility to reduce wasted miles, emissions and time. The latter positively impacted our sustainability efforts. In fact, we conducted a study that showed trucks operating with Arrive reduce their deadhead miles by more than half thanks to the data analysis and technology applications from our team. As a result, we kept 260 million pounds of CO2 emissions from entering the atmosphere.

Of course, tech is only as good as the people putting it to work and our team remains the best in the business — we promoted 320 top performers, hired 950 new team members, and improved RevGen team retention by 30%. I am particularly proud of that retention number. It demonstrates our commitment to cultivating an award-winning company culture and employee experience. Tenured employees also translate to better outcomes for our partners, leading to better outcomes for Arrive.?

Finally, opening additional offices in 2022 offered new and existing team members ample growth opportunities to explore in San Antonio, TX, Tampa, FL and Guadalajara, JAL. We will do the same this year when we open in Phoenix, AZ and Columbus, OH. The team has done a fantastic job ensuring that operational excellence and company culture are consistent across our growing number of locations.

It was also a great year of giving back to the communities where we live and work. We supported 30 nonprofit organizations through monetary donations and team member volunteer hours as part of our “Move With Us” initiative. As firm believers that businesses can help forge stronger communities, we look forward to more philanthropic opportunities in 2023 and beyond.?

The Pursuit Continues?

From RevGen to BizOps to Technology, it took tireless effort from the entire team to make last year as successful as it was. I am thrilled with our 2022 performance, but the relentless pursuit of perfection never stops at Arrive, so we have already hit the ground running toward our 2023 objectives.?

That said, the new year will unquestionably bring new challenges. Many experts still believe that a modest economic recession is coming and the freight market will likely remain in equilibrium for at least the first half of the year. To separate ourselves from the pack and grow despite these factors, we will continue investing while the market is down and not lose focus on executing our multi-year strategy. The main focus of these investments will be the ongoing expansion of our services, technology, team and geographic footprint as we strive to stay ahead of shippers’ and carriers’ ever-changing needs.

Achieving our 2023 goals means everyone must bring their best every day. Arrive has always had a high-performance culture and as we grow, so do our expectations and efforts. To that end, we will continue going above and beyond to deliver a best-in-class experience for our customers, carriers and employees. I am more confident than ever in our ability to execute and drive results in the face of challenges as we continue our ascent toward being one of the top brokerages in North America. With that, the team and I wish you all the best in the year ahead!