Cargomatic Raises $8 Million in Additional Funding

Cargomatic Raises $8 Million in Additional Funding
A California company that matches local loads with trucks via an app has received $8 million in additional funding from investors, including several in the trucking industry, it announced Jan. 29. Venice-based Cargomatic said the investment will allow it to expand beyond its initial launch in Southern California last year. The company has been ...

A California company that matches local loads with trucks via an app has received $8 million in additional funding from investors, including several in the trucking industry, it announced Jan. 29.

Venice-based Cargomatic said the investment will allow it to expand beyond its initial launch in Southern California last year. The company has been testing the app in the New York area.

Cargomatic

Cargomatic describes its system as similar to app-based systems such as Uber, which matches those looking for rides with drivers registered with the company.

Co-founder and Chief Operating Officer Brett Parker said that since starting last year, Cargomatic has “proven out the model and moved tens of thousands of shipments.”

The investors, led by Canaan Partners, include Volvo Group Venture Capital and Rob Estes, CEO of Estes Express Lines, which ranks No. 16 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers.

Estes, who described himself as a “small investor,” said that “any technology platform that allows some of [the trucking industry’s] fragmentation to be consolidated or organized has pretty good potential.”

Cargomatic said it plans to use the additional funding to improve its technology platform and to expand beyond its current 25 employees, Parker said.

Source: ttnews.com