We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Cargomatic raises $35 million investment for freight-matching app
newsworthy

Cargomatic raises $35 million investment for freight-matching app

August 16, 2018
DC Velocity Staff
No Comments

Logistics technology provider Cargomatic Inc. said Wednesday it has raised $35 million in funding that is intended to fuel the firm's expansion to new markets in the U.S. and abroad, marking a comeback for a startup that has been fighting for a place at the table in the crowded "Uber for Trucking" segment.

The new funding round was led by private equity firm Warburg Pincus, along with participation from venture capital firms Canaan, Xplorer Capital, and Muse Family Enterprises, as well as Genesee & Wyoming Inc., a Darien, Conn.-based freight railroad operator. Earlier funding rounds have included $8 million in 2015 and an unspecified investment in February by Genesee & Wyoming, that said it planned to add the Cargomatic platform to its U.S. rail service network in order to improve the efficiency of first and last mile logistics between rail and road, and to simplify multimodal touchpoints.

Venice, Calif.-based Cargomatic plans to use the latest funding to fuel its plans for geographic expansion, hire employees, and support its next phase of growth, the firm said. Cargomatic did not specify its expansion plans, but the company said in February that it planned to expand internationally to Europe and Australia.

Cargomatic did not reply to requests for comment.

The company's product is a smartphone app that connects shippers, receivers, and carriers in the short-haul and drayage trucking markets, helping users cut back on the traditional process of relying on calls, emails, and faxes to book freight transactions, according to Cargomatic.

Cargomatic is focused on the small-fleet trucking companies that handle 80 percent of deliveries in metropolitan markets, CEO Richard Gerstein said in a statement. Cargomatic now operates in Los Angeles, San Francisco, Chicago, Florida, Seattle, Dallas, Houston, and New York, and says its users include shippers, manufacturers, retailers, and third-party logistics providers (3PLs).

Cargomatic has weathered rough results since launching in 2014, including a period in 2016 when the firm laid off half its staff and saw the resignation of its CFO.

One industry analyst contacted for this story questioned why investors would continue providing funds for a provider of a load matching app when several competing firms offer comparable products. However, the source noted that the freight market's capacity shortage is creating escalating demand for services that help shippers cope with the rising costs of guaranteeing contractual capacity.

Lead investor Warburg Pincus hinted at its answer to that question in a statement calling Cargomatic's app an effective technology platform that standardizes driver onboarding and that can be quickly deployed into new markets in order to support communication between trading partners. "Now more than ever, the use of technology is critical for the logistics industry to increase efficiency, reduce costs, and create more coordinated, streamlined operations," Warburg Pincus Managing Directors Alex Berzofsky and Vishnu Menon said in a joint statement.

Technology
KEYWORDS Cargomatic
    • Related Articles

      Freight matching apps gain momentum as Convoy raises $260 million

      Sennder raises $160 million for European digital freight forwarding platform

      Freightos raises $25 million investment for logistics software

    Recent Articles by DC Velocity Staff

    Manufacturing firms bemoan interest rates, talent shortage

    Median ransomware payment doubles to $26,000, Verizon says

    Schneider says California site can charge 32 battery-powered trucks at once

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • Parcel carriers, shippers steer into choppy waters as a perfect storm of challenges approaches

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • E-commerce 3PL gains $100 million funding for its network of Mexican warehouses

    Now Playing on DCV-TV

    Mason case study thumbnail ste dcvtv

    See How Mason Drives Continued Growth with Multiple Pack & Ship Automation Systems Consolidated Under One Roof

    DCV-TV 4: Viewer Contributed
    We sat down with Craig Ritzinger, Facilities Manager, Mason Companies, to hear how the companies' continued growth and expansion has required innovations in warehouse fulfillment over time. Mason worked with StreamTech to implement a new fulfillment system for one of their brands, as well as bringing the other...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing