Investors Show Interest in Decentralized Trucking
Decentralization has revolutionized the cab industry through networks like Uber. This model has increased business, reduced costs, and given “the little guy” a way to compete with major players in the industry. Trucking has experienced similar issues to these in the past, and many have turned to these Uber-like avenues in order to get business. But even these decentralized options need funding in order to get off the ground and to seem legitimate in the eyes of customers. And thanks to investors, money may be on the way to this alternative business model.
Transfix is a provider of on-demand trucking services, and the New York-based organization recently raised $22 million in funding due to efforts led by New Enterprise Associations. The global venture capital firm’s investments will help Transfix improve their technology and expand the range of products they have to offer customers.
In addition to offering an online marketplace for trucking and logistics that matches shipments with available trucks, the company also concentrates on maximizing efficiency by reducing wasted miles. Scott Sandell, managing general partner of New Enterprise Associations said: “Transfix has differentiated themselves in a space, which is expected to grow more than 20% in the next decade, by using a tech-first approach to the full truckload market. Seventy percent of the trucking industry relies on brokers to help match customers to carriers, and Transfix’s technology brings much-needed innovation to the market, as well as efficiency not previously available.”
Other big-name organizations like Goldman Sachs have funded decentralized trucking models as well, some of which are in other countries. This type of trucking service provides those in need of freight transportation and delivery services with a quick, efficient way to get what they need. It also helps to cut costs and remove bureaucracy – which makes it very lucrative to drivers.