July 25–Fast-growing Seattle startup Convoy has hauled in another $62 million from investors and announced plans to expand its trucking software service nationally.
Convoy’s latest funding round was led by Y Combinator’s Continuity Fund, and also includes investments from heavy hitters such as Bill Gates’ private investment arm Cascade Investment, Mosaic Ventures and Barry Diller.
Convoy has grown at breakneck speed since it launched its software less than two years ago — expanding from 31 employees in April 2016 to 120 now. Its service aims to dramatically modernize one of the nation’s largest industries.
The startup makes software that allows freight shipping companies to enter specifications of what they need to move. Convoy’s technology sets a price to haul the load, and trucking companies can then accept the job.
“It’s better for consumers and better for shippers,” CEO and founder Dan Lewis said. “It helps trucks get home and gives them a round trip.”
Convoy is operating in most parts of the country today except the East Coast. The team plans to use the latest funding round to build relationships with truck drivers across the U.S. and figure out the best routes for different types of freight.
The company is now working closely with many shippers and trucking companies to find out specifically what they need from the technology. Convoy shares data with its customers to analyze what conditions create the best price and smoothest drive. One shipping customer learned that shifting what time of day its freight hits the road could reduce the price it pays for each truck, Lewis said.
Its software also reduces the amount of time that trucks are driving on the road empty, waiting for the next job to come in, he said.
The startup has more than 10,000 trucking companies using its app and website, and more than 300 shippers.
Convoy plans to build the world’s biggest logistics business, Lewis said. Right now, it’s completely focused on the trucking industry, but Lewis isn’t ruling out similar technology in the future to be used across other parts of the supply chain.
Rachel Lerman: firstname.lastname@example.org; on Twitter @rachelerman.
(c)2017 The Seattle Times
Visit The Seattle Times at www.seattletimes.com
Distributed by Tribune Content Agency, LLC.