SOLANA BEACH, Calif., Dec. 1, 2020 /PRNewswire/ -- Flock Freight, the only digital logistics provider that offers a shared truckload shipping solution for businesses, today announced that it has raised $113.5 million in financing, led by Softbank Vision Fund 2, to disrupt the freight-shipping industry. Existing investors SignalFire, GLP Capital Partners, and GV also participated in the round, in addition to new minority investment by strategic partner Volvo Group Venture Capital. Coinciding with this round, Ervin Tu, Managing Partner at SoftBank Investment Advisers, will join Flock Freight's board.
Flock Freight will use the funding to accelerate developments for the company's algorithmic pooling technology, which transforms existing less-than-truckload (LTL) and truckload (TL) shipping processes. Without Flock Freight's technology, LTL shipments move through the industry's traditional freight-shipping model: The hub-and-spoke system. With Flock Freight's algorithms, LTL shipments travel with a TL carrier as a shared truckload, avoiding hub-and-spoke facilities altogether.
Flock Freight's shared truckload solution, FlockDirect, allows several LTL shippers to share trailer space in one multi-stop full truckload. The company's patent-pending algorithms propose shared truckloads for a handful of LTL shipments that are going the same direction, optimizing transit routes based on first-in, last-out loading constraints, and moving multiple loads on one truck. As a result, shipments that don't fill an entire truck and would otherwise trans-load or cross-dock several times in the hub-and-spoke system move via high-quality truckload service with negligible loss, damage, or delay. As an added benefit, Flock Freight's shared truckload solution helps shippers boost supply chain sustainability through route optimization, cutting greenhouse gas emissions by up to 40%, and lessening the freight industry's environmental impact as a whole.
Additionally, Flock Freight offers an Instant Prebate program to solve a long-standing problem in the TL service — unused trailer space. This offering lowers existing contracted truckload rates when shippers have freight that measures 44 linear feet or less. By basing Instant Prebate pricing on the size of TL freight, the company prevents shippers from paying for unused space and provides average savings of nearly 20%. With Instant Prebate, Flock Freight automatically moves eligible freight with shared truckload shipping, delivering the same quality truckload service that shippers are used to at a reduced cost.
"Unlike the digital freight-matching category that uses technology to simply improve efficiency as workflow automation, Flock Freight uses technology to power a new shipping mode (shared truckload) that makes freight transportation more efficient. The impact of Flock Freight's algorithms is that shippers no longer need to adhere to LTL constraints for freight that measures up to 44 linear feet; instead, they can classify it as 'shared truckload,'" said Oren Zaslansky, chief executive officer and founder of Flock Freight. "Shippers can use Flock Freight's efficient shared truckload solution to accommodate high demand and increased urgency."
"We are excited by Flock Freight's innovative freight-pooling technology. Flock Freight is the first and only freight company to create a new shipping mode, using algorithms to pool multiple shipments together and transport them along the same route. As a result, Flock Freight is improving supply chain efficiency for hundreds of thousands of shippers. Our investment is intended to accelerate the company's ability to scale its business and capture a greater share of the market," said Ervin Tu, Managing Partner at SoftBank Investment Advisers.
"At Volvo Group Venture Capital we look for startups building for the future with technology advancements that will transform the freight industry. We are excited to work with Flock Freight to continue to improve the global supply chain through our best-in-class OEM capabilities, paired with Flock Freight's pooling technology," said Dan Tram, Investment Director at Volvo Group Venture Capital.
This Series C funding follows recent industry awards and achievements for Flock Freight, which is the first freight-shipping company to earn a B Corporation Certification. Additionally, Supply & Demand Chain Executive named Flock Freight a winner of its Green Supply Chain and SDCE 100 awards. Further recognition includes Founder and CEO Oren Zaslansky's win of the EY Entrepreneur Of The Year 2020 Pacific Southwest — San Diego award.
About Flock Freight Flock Freight is a San Diego-based B Corp that's been reinventing traditional shipping methods since opening for business in 2015. As the only digital freight provider to guarantee shared truckload shipping, Flock Freight leverages proprietary technology and relationship-driven service to pool shipments that are going the same direction onto one truck. The company provides faster, safer, and more sustainable service for LTL and TL shippers, in addition to increased revenue potential for carriers. Flock Freight's shared truckload solution eliminates terminals and cuts freight-related carbon emissions by up to 40%. Flock Freight is backed by SoftBank, SignalFire, GLP, GV, and several other leaders in the supply chain transformation.