KeepTruckin Reaches US$1 Billion Valuation, Joins Freight-as-a-Service Unicorns

KeepTruckin, a startup fleet management provider, reached US$1.4 billion in value after an additional US$14 million in Series D funding, with support from existing investor GV. Revenues are anticipated to triple this year. The company announced plans to launch its Smart Load Board later this year, leveraging its ELD data. Freight-as-a-Service (FaaS) competition includes Uber Freight (parent company IPO coming in 2Q), Convoy (reached unicorn status last September through Alphabet, Y Combinator, Benioff, Gates, Bezos, etc.), Trucker Path (acquired in 4Q by Renren), Transfix (revenue run rate above US$100 million), and Truckstop.com (recent large investment from Iconiq Capital), as well as traditional 3PLs like C.H. Robinson and J.B. Hunt.

Continued massive growth in e-commerce, coupled with rising consumer expectations and tightening delivery windows from mega retailers like Walmart, are all putting pressure on the logistics value chain for efficiency and profitability. One way to address a fleet’s revenue generation and profitability is through reduced deadhead (empty) miles, leveraging digital freight matching services and marketplaces. Even at potentially lower prices (rate per mile), the reduced or eliminated deadhead can lead to higher revenues and ROI based on asset optimization. Technology evolution from affordable, powerful phones to 4G connectivity to growing FaaS options are moving adoption across a range of fleet sizes and types. All of these are putting pressure on traditional brokers to reduce costs and increase transactional speed.

Prominent tech companies are utilizing their VC groups to invest, sometimes in more than one digital freight brokerage firm, with multiple examples above. There are other “Uber of Trucking” companies beginning to thrive in emerging markets including China and India. Some influential tech providers are extending their expertise, including mapping lead HERE, which released Mobility Dispatch, which includes a dispatch optimization tool with demand prediction as part of an omnichannel transportation solution.

Digital freight matching has already demonstrated early evolution, from providers extending their reach and offerings across the value chain to acquisitions and IPOs. The “know-before-you-go” concept will continue to be attractive to drivers with fleet operations trying to find the best experience and results. Algorithms and machine learning will provide enhanced visibility, predictability, and flexibility to fleets. This should also create a more level playing field for the estimated 90% of smaller fleets in the United States, with opportunities to connect to backend systems. Providers such as Transfix have plans to extend into lending services for drivers as competition intensifies and providers seek additional profit centers. Traditional 3PLs are also forced to address this growing transformation. They have an opportunity to leverage their current scale, adopt emerging technologies, and consider new partnerships. Over time, expect a consolidation of no more than a handful of providers that provide scale, address the breadth of fleet sizes and needs, and offer an Apple-level experience with seamless connectivity across the logistics supply chain.