Logistics software startup 10-4 Systems Inc. has landed $13.9 million in funding, and plans to use the cash to spin off from parent company GlobalTranz Enterprises Inc. and find its own path in the turbulent "Uber for trucking" sector, the company said Monday.
Founded in Boulder, Colo., in 2012, 10-4 makes a fleet management trucking app that automates the data exchange among carriers, brokers, and shippers, matching trucks with shipper loads so carriers can avoid empty backhaul miles.
10-4 will use the new funding to ramp up its product development and customer acquisition efforts and to complete its spin off from GlobalTranz, a Scottsdale, Ariz.-based freight management company, according to a release from 10-4. The two companies will continue to share a tight link, however, since the funding was led by an investment from GlobalTranz co-founder Andrew Leto.
Investors have been pumping money into the "Uber for trucking" niche in recent years, supporting other providers such as BoxSmart LLC and Cargomatic Inc. As the sector goes through growing pains, these pioneers have hit some turbulent waters, with Cargomatic recently shuffling its executive team and laying off a large portion of its staff.
While its sharing model is similar to those companies in its approach of cutting inefficient manual processes, such as phone and fax communication, according to the 10-4 website the product is distinct because it provides additional services such as real-time document capture, shipping visibility, fleet management, backhaul management, and logistics software.
"We've secured significant investment that will continue to fuel our growth, expansion, and innovation for years to come," Travis Rhyan, 10-4 President and CEO, said in a statement. "We look forward to continuing to serve our customers with best-in-class technology and service as we work together to bring modern-day technology to an antiquated industry."