Mobile Freight Leader Transfix Raises $12M Series A Canvas Ventures Leads “Uber of Trucking” to Revolutionize Shipping
NEW YORK, November 10, 2015 – Transfix, a leading mobile and software-enabled trucking brokerage, today announced $12 million in Series A funding led by Canvas Ventures. Existing investors participating in the round include Lerer Hippeau Ventures, Founder Collective and Bowery Capital.
Semi-trucks transport 70% of all U.S. freight. In 2014, heavy-duty trucks drove 381 billion miles — 53 billion of which were driven "empty." By 2040, empty miles are expected to increase 43%. Transfix reduces empty miles with algorithms that match freight with trucks based on location. Transfix's model decreases greenhouse gas emissions, and yields significant savings for shippers and increased pay for truck drivers.
“Every year in the U.S., trucks drive enough empty miles to reach Mars 350 times. It’s a colossal waste of time and money that hurts shippers, drivers, and the environment,” said Drew McElroy, Co-Founder and CEO of Transfix. “These ‘deadhead’ miles are a serious problem that Transfix is eliminating with a radically different approach to brokerage.”
Prior to launching Transfix, McElroy served as president of Priority Distribution Inc. (PDI), an end-to-end third-party logistics (3PL) provider co-founded by McElroy’s family.
“Transfix represents an exponential leap in technology available in freight logistics, and poses an existential threat to the entire ecosystem of 30,000 truckload brokers,” said Canvas Partner Ben Narasin. “Transfix cares deeply about their drivers and customers; and their technology makes life and business better for both.”
On demand truckload matching is redefining freight brokerage, and is enabling digital transformation within supply chain execution. In August, Frost & Sullivan named Transfix a leader in “Uber of Trucks.” The firm estimates mobile-based freight brokerage to reach $26.4 billion by 2025.
"Transfix is bringing the legacy logistics industry into the era of digital business," said Canvas Partner Paul Hsiao. "Their 20x growth since the beginning of the year is a testament to the team's deep industry knowledge, and to the overwhelming need for automation and digital adaptation in this market."
Both Narasin and Hsiao hold seats on Transfix’s Board of Directors.
Transfix will use the new funding to accelerate development of its automated third-party logistics (3PL) services and supply chain execution platform for manufacturers and distributors. Research and development will focus on prescriptive algorithms, business intelligence and supply chain visibility.
Transfix’s mobile app and SaaS platforms are fully integrated, and 100% free to use. Driver and carrier services include default detention pay, free quick pay and cash advances.
Transfix freeware suite:
- Cloud-based SaaS transportation management system (TMS) for shippers.
- Cloud-based SaaS fleet management system (FMS) for carriers.
- Mobile app for truck drivers (iOS & Android).
Transfix is an award-winning on-demand shipping marketplace for manufacturers and distributors. A recognized market leader in mobile-based brokerage, Transfix transports full truckload (FTL) freight throughout the continental United States.
Launched in August 2013, Transfix has raised $14.5M in capital and is backed by top VC firms in NYC and San Francisco, including Canvas, Lerer Hippeau Ventures, Founder Collective and Bowery Capital. Transfix is headquartered in New York City.
Named a "Top VC Firm to Watch" by the 2015 Forbes Midas List, Canvas is an early-stage venture capital firm based in Portola Valley, CA. The partners are known for investments in software & services companies, including Lending Club, MuleSoft, Houzz, Evernote, Siri, Check, Doximity, Elance-oDesk, Gaikai, Zenefits, Kabbage, Dropcam, and more. Paul Hsiao, Ben Narasin, Rebecca Lynn, Gary Little, and Gary Morgenthaler serve as the firm's investment partners. They are “thesis investors” and currently concentrate on the areas of fintech, digital health, data/cloud and marketplaces. The Canvas partnership was formed in August 2013, and has invested in and joined the boards of: HealthLoop, Viewics, CrowdFlower, Totango, Eden, and Transfix. Another Canvas portfolio company, FutureAdvisor, was acquired by BlackRock. www.canvas.vc.