Recognizing nearly 20 billion miles were being driven in the U.S. every year by empty trucks, TransFix stepped in to remedy the situation. Now, after raising over $75.8 million in funding, the NYC-based startup is poised to play an even bigger role in the U.S. trucking industry.
TransFix: A Great Idea
Founded in 2013 by trucking veteran Andrew McElroy, and Jonathan Salama, TransFix is a technology based startup aimed at streamlining the freight carrying industry. The idea behind the company is simple: find independently owned trucks and pair them with shippers looking to move freight across the interstate.
The Uber of Trucking
It didn’t take long for the company to be called, ‘The Uber of trucking.’ Much like Uber, TransFix uses a dedicated smart phone app that allows customers to request available drivers on-demand. Shippers make requests to the company’s online brokerage system, and the order is routed to the dispatch page. There drivers can see how much the haul is for, where it’s going, and can instantly decide whether or not to bid on the shipment, or choose an option similar to Ebay’s ‘Buy it now’. Also like Uber, shippers can monitor their freight in real-time, so they know exactly where the order is and when they can expect it to arrive.
A Win-Win Approach
So far, both carriers and shippers see the app as a win-win. Shippers are able to more efficiently ship goods, often for a much lower cost, and are able to monitor the trips. Carriers no longer have to hunt for their next order, and are more consistently working. According to TransFix CEO and co-founder Andrew McElroy, ‘This technology combats three types of waste: trucks driving empty to their next pick-up, time lost in looking for another load, and shipment processing time.’ Along with these benefits, there are also the environmental benefits as well. By ensuring drivers have full loads, and are driving more efficiently, the number of miles – and thus fuel and emissions burned – have both been drastically reduced as well.
Great Investor Interest
Since its founding in 2013 TransFix has successfully raised four rounds of venture funding – one round per year. The first round in 2014 was a $2.5 million Seed Round that saw eleven investors involved and was lead by, Bowery Capital and Lerer Hippeau. The second round closed in 2015 was a $12 million Series A which included six investors, lead by Canvas Ventures. The third round was closed the following year in 2016 and was a $22 million Series B, again with six investors, this time lead by New Enterprise Associates. Finally, the most recent round was closed in 2017, and was a $42 million Series C which was again lead by, New Enterprise Associates. All told, TransFix has raised over $78.5 million in funding.
Whether or not TransFix is able to dominate the market to the degree seen by Uber has yet to be determined, but one thing that’s for certain is that the company is off to a very fine start!