Redwood Logistics partners with digital freight startup to target smaller carriers
SmartHop’s AI-based smart load engine has drawn financial backing from executives at Redwood, GlobalTranz, and Project44.
A digital freight brokerage startup firm backed by some of the biggest names in transportation will partner with third party logistics provider (3PL) Redwood Logistics in a deal intended to steer more freight volume to small trucking carriers, the firms said.
Founded in February, SmartHop says it uses artificial intelligence to deliver smart load recommendations, back-office support, performance tracking, and digital bookings at above-market rates for small trucking companies. The Miami-based firm is funded by a $4.5 million venture capital round from Equal Ventures, Greycroft, and Las Olas VC, as well as by individual backing from Alex Yeager, director at Redwood Logistics, Andrew Leto, founder of GlobalTranz and Emerge TMS, and Jett McCandless, founder of logistics company Project44.
Its new partnership integrates the firm’s “intelligent solution” with Chicago-based Redwood’s application programming interface (API) to streamline and offer better load opportunities for drivers, SmartHop said.
Redwood said that move could also help extend the reach of its own community to better respond to the evolving needs and challenges of owner operators. “The integration with the SmartHop platform will enable us to drive carrier utilization and provide freight opportunities to carriers of all sizes,” Michael Johnson, Redwood’s EVP of strategy, said in a release. “By partnering with SmartHop, we are able to expand our capacity ecosystem and better serve our shipping partners through our digital freight brokerage.”
Other players in the sector have launched comparable efforts to serve small and mid-sized fleets with specialized brokerage offerings, such as New York-based Transfix, which launched a “Fleet Planner” tool in October. Additional platforms in that space include Seattle-based Convoy and the startup Haulme LLC.
The backbone of the trucking industry is small carriers and owner-operators. That’s why we’ve partnered with @redwoodlgistics, bringing new loads and critical digital tools to drivers. https://t.co/aml1DOiO1k
— SmartHop (@smarthop) December 8, 2020