Venture-capital investors continue to pour money into freight tech startups. Funding this year is expected to be 12% more than 2019, according to analytics firm CB Insights, with the Covid-19 pandemic raising interest in companies who have a fresh approach for easing the strain on supply chains.
Freight tech startups have typically focused on the intermediary process of connecting shippers with carriers to speed transactions using freight matching platforms with on-demand pricing and “book it now” features to secure loads or capacity.
One area that has been overlooked to squeeze costs out of supply chains is speeding the velocity of shipments by reducing drivers’ dwell times. This has always been a structural inefficiency in the trucking industry and has intensified by massive shifts in supply chains spurred by the coronavirus.
Passing the baton
Tech startup, Baton, is taking aim. The company was founded in October 2019 by Nate Robert and Andrew Berberick in San Francisco, after they worked as entrepreneurs for 8VC, one of the largest venture capital firms in transportation and logistics.
Baton received investment from 8VC and others as a tech-enabled final mile delivery company. It developed proprietary software to coordinate and optimize the first and final mile of long haul truck routes through its secure network of drop zones and local drivers. It sources the drivers from fleets and independent contractors.
The trucking customers of Baton drop off and pick up trailers from its drop zones. Local drivers in the network shuttle loads to their final shipping and receiving facilities.
