Shipping Industry Getting an Overhaul

The shipping game is about to change, thanks to a startup company that is backed by Jeff Bezos (Amazon), Bill Gates and most recently, Alphabet Inc. (Google's parent company). Those are some power players, no?

Convoy Inc. is a trucking technology developer that is bringing the concept of Uber and Lyft to the shipping industry. The software matches shippers to truckers. It helps shippers get better pricing, helps truckers save money by coordinating return trip hauls, and improves efficiencies on both sides. With trucking being a $740 billion industry, there is a lot of room for growth.

The startup is now valued at $1 billion, according to an article from Bloomberg, with CapitalG, Alphabet Inc.'s growth equity fund as the most recent investor to join the party. Convoy is only three years old, so it plans to use the money to expand and build volume in certain regions, such as the Southeast. The company will also invest in improving algorithms and software to help make processes for drivers and shippers easier. Both parties can connect through an App, streamlining the whole process.

Trucking is a highly fragmented industry, with the largest 5 firms only controlling 20% of the market share. It will be interesting to see how Convoy shapes the industry in the coming years.

 

 




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