Flock Freight secures $ 215 million for technology that finds available space on trucks

[Stay on top of transportation news: Get TTNews in your inbox.]

Flock Freight, an Encinitas, Calif., Trucking logistics company that aims to revolutionize the way freight moves across the country, has landed an additional $ 215 million in venture capital.

The funding round, led by Softbank Vision Fund 2, is in addition to the $ 113.5 million raised by Flock Freight in December. The company now joins Seismic, Tealium, Shield AI, and ClickUp as private San Diego-area startups with valuations exceeding $ 1 billion.

Flock Freight said the money will be used to advance its patent-pending shared truck loading platform. The market uses freight pooling and probabilistic pricing algorithms to combine small amounts of product shipped in a full shared truck, similar to carpooling for freight.

Founded in 2015, the company has experienced accelerated growth since January 2020, said founder and CEO Oren Zaslansky. “We’re a six-year overnight success story. We now make hundreds of millions in income, I think it’s fair to say, and employ 325 people to date. “

Flock Freight uses technology to locate less than full trucks heading in the same direction. In his market, he then finds loads to fill those trucks based on the fastest routes and first in, last out loading requirements.

It also has a pricing engine that allows LTL shippers to pay only for the amount of truck space they use, with price brackets based on the likelihood that other shippers will emerge to fill. the rest of the truck.

“We are changing the rules,” Zaslansky said. “We’re the only company in the world using technology to fundamentally change the way freight moves. “

Zaslansky via Flock Freight / YouTube

Flock Freight’s technology increases efficiency and therefore reduces the carbon footprint of the shipment, according to the company. It estimates that more than 15,000 tonnes of emissions have been reduced to date with its technology, and it is on track to exceed its target of 20,000 tonnes of CO2 emissions savings by 2021.

The new funding brings the total amount raised by Flock Freight since its inception to just under $ 400 million.

“We believe that Flock Freight’s technology has demonstrated its unprecedented ability to consolidate shipments in real time, maximize trailer utilization and reduce waste, while providing a high quality of service,” said Andrew Straub , Director of Investments at SoftBank Investment Advisers. “We are delighted to continue to support Oren and the Flock Freight team in their goal of reinventing freight transportation. “

The freight industry is huge, Zaslansky said. It is generally divided into two categories: shippers looking to transport trucks full of goods and those looking to ship full trucks.

The LTL category typically uses a hub and spoke system, where goods are trucked to terminals, unloaded and then reloaded onto different vehicles until they reach their destination.

The result is high costs and long transport times, Zaslansky said. With its Pooled Marketplace, Flock Freight argues that LTL shipments arrive faster and stay on the same vehicle, thus preventing possible damage from unloading.

For full truck transport, shippers sometimes pay for the entire truck even if it is not completely full, Zaslansky said. This is happening more often as pressure mounts to get goods from docks to empty store shelves after the pandemic. Flock Freight’s technology allows shippers to add their cargo to any empty truck space along the way.

With Softbank Vision Fund 2, Susquehanna Private Equity Investments and Eden Global Partners have joined this latest round of funding. Existing investors, including SignalFire, GLP Capital Partners and GV (formerly Google Ventures), also participated.

“The company is truly disrupting long-standing shipping processes by leveraging a management team and leading technology that overcomes the complexity of freight pooling,” said Dean Carlson of Susquehanna.

Want more news? Listen to today’s daily briefing below or go here for more information:

Source link