CloudTrucks, lauded by many as the industry’s first virtual trucking system, recently raised $6.1 million in a funding round led by Craft Ventures. The startup aims to help truck drivers maximize earnings and minimize frustrations. The funding comes at a pivotal time for truckers, who have been facing bankruptcy at increasing levels.
According to the American Trucking Associations, “The trucking industry is the lifeblood of the U.S. economy.” Its vital role in product delivery led it to generate more than $796 billion in revenue in 2018. However, truckers, especially small business owners, face myriad obstacles to success. As owners and operators of their own businesses, truckers are focused not only on coordinating deliveries, but also on negotiating new business deals, seeking costly insurance, and payment processing. While smaller trucking companies may turn to large carriers to offload major projects, outsourcing comes at a steep price.
The resulting drain on time and finances is significant, especially for small trucking companies.
“In the first half of 2019, around 640 trucking companies went bankrupt, according to industry data from Broughton Capital LLC. That’s more than triple the amount of bankruptcies from the same period last year — 175,” according to a recent Business Insider report.
CloudTrucks provides a concrete solution for truckers by addressing the key issues of revenue, cash flow, and costs. As a virtual trucking carrier network, the company uses automated systems to process payments, projects, and paperwork for truck drivers. The use of technology saves truck drivers time and effort, enabling them to focus on other aspects of the business. CloudTruck’s data science model also customizes the experience for each truck driver, maximizing revenue and leading to decreased insurance costs.
CloudTrucks co-founders Tobenna Arodiogbu, Jin Shieh, and George Ezenna are pleased to bring what they call “a business-in-a-box approach” to small trucking companies. As Arodiogbu, the CEO of CloudTrucks, notes, the solution is a welcome one for truck drivers.
“Virtual trucking will help millions of truck drivers keep more of their earnings. CloudTrucks brings the technology and operational know-how to make this a reality,” said Arodiogbu. “Here at CloudTrucks, we obsess over driver happiness. That means that we are focused on building the very best product offerings for truck drivers.”
Khosla Ventures, Kindred Ventures, and Abstract Ventures participated in the successful funding round. Funds will be used for product expansion and improvements to support owner-operators and small carriers.