Seattle startup Convoy seeks to be Uber of trucking, raises $400 million
A Seattle startup seeking to be the Uber for trucking has taken in upwards of $400 million in its latest round of fundraising, and has landed some big-money investors, including Amazon’s Jeff Bezos, Salesforce CEO Mark Benioff, and Cascade Investment, a holding and investment company controlled by Bill Gates.
Like its competitor Uber Freight, Convoy seeks to modernize the trucking business and fill in gaps in efficiency while reducing carbon emissions, like the fact that approximately 35 percent of trucks are driving empty on any given day, reports The Seattle Times.
Many trucking companies do business via phone and text, but Convoy seeks to employ machine learning and automation to link up freight loads with available trucks, allowing companies to monitor shipment updates in real-time and ensure payment is received faster. It also allows drivers to book multiple jobs at the same time in proximity to each other, making finding work easier and reducing lag time.
The service is expected to both increase earnings for truck drivers as well as service efficiency for shippers, according to Joy Tuffield, partner at Generation Investment Management.
At the moment, competitor Uber trucking has 50,000 carriers and recently scored an additional $200 million investment. Convoy is not yet at profitability, and still in the process of hiring employees and opening in more cities. Convoy says their platform currently includes tens of thousands of trucking companies.