12 Billion-Dollar StartUps of the Future in Logistics
Who are the logistics StartUps that will make billions of dollars by stamping the future of the logistics industry in the world? Here are 12 logistics operations management StartUps that hit the target from 12 in many countries of the world.
1. Coyote “Real Smart Logistics” (USA)
Founded in 2006, Chicago-based StartUp acquires “Access America Transport” in March 2014. Coyote provides road logistics services to Transport and Logistics companies in the North American region. The digital platform, which acts as an intermediary for more than 30 thousand shipments per day, caught the attention of UPS, the world’s largest cargo transportation company, which is looking for a solution for digital transformation in 2015 and was purchased for 1.8 Billion USD last year.
2. Convoy “Better Logistics at Your Fingertips” (USA)
Providing a platform and infrastructure service that unites transport and logistics companies, truckers and truck cooperatives, StartUp was launched in October 2015 with an investment of 2.5 million USD. Growing rapidly and attracting attention in a short time, Convoy received an investment of 16 million USD from the Greylock Partner investment group in March 2016.
In November 2016, it signed an agreement with the retail giant Unilever and started serving Unilever’s supply chain as a logistics ERP with its digital infrastructure and platform. Convoy, whose value increased rapidly after the Unilever agreement, reached a valuation of close to 200 Million USD.
3. Doft “Transforming Logistics” (USA)
Doft, which was established to serve 400,000 individual truck owners and small shipping companies in the USA, entered the market in a very ambitious way. With its structure similar to Doft, Uber and Lyft, it aims to rapidly expand into the logistics transportation sector, which has a total value of approximately 80 Billion USD. Doft’s earnings model is determined as a service fee of 5 USD per freight transport service performed on the platform. Regardless of the value, size and distance of the cargo, the service fee of 5 USD per transport does not change.
Former IBM engineer, new Doft CEO Dmitri Fedorchenko, with the system they developed, beyond creating added value in terms of both time and financial gain in the logistics sector, there will be a return load for trucks that return empty, which is common in the transportation system in the USA -without a return load-, thus creating an important environmental impact. states that added value will be created. Thanks to Doft, a 15% to 25% reduction is expected in trucks that return empty without a return load in the first place.
4. CargoX “Always Flawless Transport” (BRAZIL)
The investment and development process started with a founding capital of 1 million USD in 2014, and it went live with an investment of 4 million USD in 2016. CargoX has increased the number of truckers who are members of its digital platform to 100,000 in just one year. CargoX digitally unites Brazilian Transport and Logistics companies and provides services to all regions of Brazil. The success of CargoX , which has made an impact in the Brazilian logistics sector, draws the attention of the Goldman Sachs group, which also funds Uber , and continues to grow in 2016 with a fund of 10 million USD from the investment group.
Logistics technology startup CargoX, whose value is still over $40 Million, is known in Brazil as the “Uber of Trucks” .
5. Huochebang “Truck Gangs” (CHINA)
The annual volume in the giant Chinese logistics sector, where 80% of logistics transports are carried out by road and 20 million trucks serve, has exceeded 1.6 trillion USD. Established in 2008 in this huge market, Huochebang quickly came to the fore. It provides a digital logistics platform for Chinese Truckers and Logistics companies.
With the 115 Million USD fund it received in December 2016, it increased its total value from 885 Million USD to 1 Billion USD, reaching the level of size known as “Unicorn” in the StartUp world.
6. Rivigo “Trucks First” (INDIA)
Known for its power in information technologies, the logistics sector in India is fragmented and mostly far from institutional functioning. It is seen that the communication conditions especially increase the management costs excessively and the conditions that cause long waits-delays of the Truckers are being struggled.
Rivigo StartUp, which went live in India in 2014 with the slogan of “Trucks First”, pursues a strategy that primarily aims Truckers to find outbound and return loads. Rivigo stands out in India’s digital logistics services by increasing its total value to 114.9 million USD with the last 75 million USD investment from the US-based Warburg Pincus group.
7. Delhivery “Commercial Ecosystem of the Future” (INDIA)
Founded in 2011, StartUp’s strategic area includes e-commerce and e-commerce logistics. StartUp provides digital infrastructure developed for supply chain management, 3PL, reverse logistics, warehousing management, transportation management and collection management focused on e-commerce solutions. Founded with an investment of 1.5 million USD, StartUp attracted attention in a short time and grew with an additional investment of 6 million USD and then 35 million USD.
Delhivery brought its total investment value to 227.5 million USD with an investment of 85 million USD from the USA-based Tiger Global Management investment group in May 2015 and a new 100 million USD investment from The Carlyle Group in March 2017.
8. Blackbuck “Easy and Effective Transport” (INDIA)
Going live in 2015, Blackbuck aims to provide a solution to the inefficiency of traditional structures in the Indian logistics industry. StartUp provides services for the sector to be restructured with a great digital transformation and to have a reliable and effective structure. It is argued that such a digital transformation will be a new beginning for the Indian Logistics Industry. Founded in July 2015 with an investment of 5 Million USD, StartUp , which attracted the attention of the USA-based Accel Partners investment group in a short time, increased its total value to 30 Million USD with 25 Million USD in November 2015.
BlackBuck’s new investor Sands Capital and its current investors Accel Partners and e-commerce giant Flipkart brought its total value to 100 million USD with a new investment of 70 million USD.
9. Truckiez “Hassle-Free, Flawless, Guaranteed Service” (AUSTRALIA)
Founded in Australia in 2016, Truckiez provides a digital logistics platform covering the whole of Australia with its service network. Trukiez StartUp incorporates TIC Group , which has been providing logistics and supply chain services to retailers and manufacturers in Australia for more than 20 years.
In Australia, 80 percent of carriers are small haulers with no more than 1 to 5 trucks. This structure creates a structure that is difficult to follow, in which transports are constantly outsourced. By taking Truckiez StartUp to the digital platform of these small and medium-sized transportation companies, it enables them to easily track and manage logistics companies, -Loading-company and factory loads via Truckiez ERP . Truckiez ‘s goal is; By providing digital transformation to the 52 Billion USD Australian logistics industry, both to achieve significant savings in the management costs of the industry and to provide effective management gain.
10. uShip “Loaders Meet Truckers” (USA-GERMANY)
Established in 2003, based in Texas, USA, uShip StartUp defines itself as an online shipping marketplace. Shipping services of many types of cargo can be provided through the online platform. In the carrier pool, there can be large logistics companies, small fleets, drivers with only one truck, or sometimes even special vehicles that only travel from one place to another. While uShip establishes a structure that allows partial cargo transportation within its customer-centered structure, it can also accommodate large logistics companies, logistics brokers and structures providing 3PL services with the “enterprise software infrastructure” it has developed.
uShip, which has increased its total value to 69 million USD with the last 25 million USD investment from DB Schenker , is preparing to establish a service network, especially in Germany and Europe, together with Schenker.
11. Ezyhaul “Save Time and Money in Logistics” (MALAYSIA-SINGAPORE)
Founded in April 2016, Singapore-based digital logistics StartUp Ezyhaul received an investment of 836 thousand USD from Singapore logistics industry leaders. It aims to overcome the inefficiencies of traditional management practices in Southeast Asian road transport, with a total value of 27 Billion USD, with digital technology solutions. Having the opportunity to expand into other key logistics markets in South Asia such as Malaysia, the Startup has grown by 80% every month since it went live. Ezyhaul StartUp, which draws attention to its offices in Kuala Lumpur, Penang and Johor Bahru, which works devotedly in its success, pursues a growth strategy by opening offices in two more main markets of South East Asia in 2017.
12. TIRPORT “Future of Logistics” (TURKEY)
TIRPORT, with the slogan “Future of Logistics” , is the internet investment company AB Plus Bilişim Teknolojileri A.Ş. implemented in Turkey. With an investment of 2.5 million USD, the design and development works started in 2014 came to life at the end of 2016. With the richness of its Business Model and the values it adds to the logistics actors and the marketplace, it sets a global example in the uberization of the sector.
TIRPORT ; It also serves as a Logistics ERP specially developed for Loading factories and companies, Logistics Companies and Trucker Cooperatives to effectively manage their existing logistics operations and monitor them in real-time and location-based. All waybill and invoice information related to transportation are electronically embedded in the transportation process, and with the developed GPS-based electronic security systems, the transportation process and load are taken under control at every stage. A truck using TIRPORT cannot upload the approved waybill to the TIRPORT Mobile Application before reaching the loading point. If there is a delay in transportation, the owner of the cargo can be informed sufficiently in advance.
TIRPORTAnother remarkable service, which will start to install on trucks free of charge, is the Vehicle Security System (AGS). (www.agsteknoloji.net ) AGS vehicles with Black boxAll images and travel information at the time of the accident are transferred to the cloud environment with an automatically generated dynamic report; Vehicle and cargo owners and insurance companies that insure the vehicle are provided with instant access to accident information. While loaders and truck owners feel safe with AGS , vehicle owners can get serious insurance discounts.
Aiming to act as an intermediary for more than 20 thousand transports per day in the next 3 years, TIRPORT aims to be the largest logistics management platform in the region.