Digital freight logistics company Flock Frite Today it announced that it has raised $215 million in Series D funding led by Softbank Vision Fund 2, boosting the startup’s valuation to $1.3 billion. The round also included participation from Susquehanna Private Equity Investments, LLLP, Eden Global Partners, SignalFire, GLP Capital Partners and GV (formerly Google Ventures), and will be used to support the development of Flock Freight’s technology and expand the company’s talent and operations, according to CEO Oren Zaslansky.
Demand and disruptions related to the pandemic have put enormous pressures on the supply chain. DAT Solutions found that shippers’ requests to transport goods increased 577% from April 2020 to April 2021, while truck deliveries available to transport goods decreased by 17%. Meanwhile, e-commerce sales continue to post huge growth, with internet penetration remaining nearly 35% higher than pre-pandemic levels, according to to McKinsey.
Founded in 2015 by Zaslansky, Flock Freight hosts a market with swimming pools Less than truckload (LTL) and partial truckload (PTL) Freight shipments so that they can be shipped via a full truckload service. For LTL, Flock Freight makes it easier to move cargo on trucks to their intended destinations, eschewing the traditional cargo transportation model. In the case of the PTL, the platform finds up to ten trucks along a single road and combines them into one truckload for maximum savings.
“I’ve been in the trucking and logistics business for over 20 years since I founded the E&H Transport Network in 1996. I’ve built E&H from the ground up, including hiring and hiring more than 1,000 truck drivers,” Zaslansky told VentureBeat via email. . . “In 2001, I founded SolSource Logistics, a third-party logistics company serving international Fortune 1000 clients such as Whole Foods, Wegmans Grocery, and Sprouts Market. Serving a diverse client base in the transportation industry, I identified the unmet need to reduce significant waste and the old-fashioned approach to Transportation. All too often, assets are underutilized and freight moves through intermediate warehouses while otherwise technology can facilitate these solutions without wasting bricks and mortar.”
Flock Freight also offers instant “pre-loading” that lowers contracted truck load rates when shippers have a load of 44 feet or less. With this program, Flock Freight automatically moves eligible shipments through combined truckload freight, ostensibly providing the same quality and affordable truckload service.
“Flock Freight’s machine-learning-based product, FlockDirect, brings less-than-truckloads of a few pallets together to create full truckloads. It improves routings by grouping cargoes traveling in the same direction so that trucks only stop at each drop-off point, avoiding conventional terminals.” To create shared truckloads, Flock’s clustering algorithms scan a vast number of possible freight permutations to find only those that are feasible and economically beneficial to all parties. A ‘fusion explosion’ occurs when Flock Freight takes the hundreds of part-size freight deliveries it receives per day and uses a complex algorithm to bundle them together into single trucks – combining three to five partial loads taking into account many variables such as destination, timing and type of product (food vs. materials chemical) and more. For 500 shipments, potential aggregation groups exceed 62 billion, to put numbers to show the scale.”
Disrupting competition in the shipping industry
Flock Freight claims its driver network numbers in the US and Canada are in the thousands, and each individual driver can be tracked in real time via dashboard or email notifications. The company says the compensation claim rate is as low as 0.001% and the on-time delivery rate is 97.5%. It also says it can reduce fuel emissions by up to 40% by eliminating the need to switch trucks or stop at warehouses.
“Flock Freight has collected nearly 20,000 shipments… In addition, Flock Freight’s non-axle assembly product has attracted new customers in 2020, including mid-market companies and companies such as Berlin Packaging, Blue Diamond Almonds, Mueller Industries, Nature’s Bounty and “The company tripled its workforce in 2021 and plans to add more talent to its Encinitas headquarters and new location in Chicago this year, and additional plans to hire more people in 2022,” said Tuft & Needle Zeslansky.
Zaslansky argues that these statistics set it apart from competitors in the freight logistics space. Uber offers a service called Uber Freight, which recently set aside another $200 million as part of a major expansion. Startup in San Francisco KeepTruckin’ It secured hundreds of millions of dollars to further develop its freight market. Next Trucking Last year closed an investment of $97 million. while, Convoy It raised $400 million, valuing $2.75 billion, for a platform it says makes trucking more efficient.
Flock Freight is disrupting the $2 trillion shipping industry because it is doing something no other company has been able to do: fundamentally change the way the industry operates. While digital freight brokerages such as Convoy, Uber Freight and Transfix automate and simplify the communication between shippers and carriers, Flock Freight is the only company that has changed the way freight is transported with an entirely new shipping method.” Our business has grown despite the pandemic. Because we offer faster shipping times while protecting shipments from damage, our customers understand and experience the power of our combined truckload technology.”
Solana Beach, California-based Flock Frite – which she has lift $399 million so far and on track for 325% year-to-date revenue growth – plans for an initial public offering in the next 18 to 36 months.
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