Silicon Valley companies have a presence everywhere. Californian software and mobile app companies, from Facebook to Uber, are diversifying every day, and are constantly trying to get a foothold in new markets. And recently, some hungry startups have targeted the $700 billion trucking industry.
The Trucking Industry and Smartphones
According to the Wall Street Journal, Convoy, a young organization that matches companies who are looking to ship goods locally with truck drivers, recently raked in $2.5 million dollars from some big-name funders. Some of the investors include Amazon founder Jeff Bezons, Salesforce founder Marc Benioff, Uber co-founder Garrett Camp, and eBay founder Pierre Omidyar.
These titans of technology have a great deal of optimism for Convoy’s potential. If it manages to get on its feet, should eliminate the need for the traditional brokerage system in the trucking industry. Typically, when a company has goods that it needs to ship, a third-party broker pairs them with a trucker who needs freight to carry. Convoy, though, skips the middle man and provides an “Uber for truckers.” The program provides matches in minutes and also provides an instant pricing formula, which takes away any wasted time that could be spent haggling and bargaining.
Convoy is just one of many startups that are trying to find a place in the gigantic trucking industry. Cargomatic Inc., out of Los Angeles, is trying to reinvent the trucking industry by providing a forum for truckers to fill any empty/unused space before they embark on their route. This way, companies that have a very small quantity of goods to ship can essentially “rideshare” with another company’s shipment that is heading to the same destination, thus maximizing efficiency for both the company and the trucker.
Use Your Smartphone to Grow your Trucking Business
The trucking industry has remained largely unchanged for several decades. For whatever reason, truck drivers are somewhat averse to new technologies coming in and changing the nature of the job. Now, though, it seems as if Silicon Valley companies are starting to find ways to maximize the industry’s efficiency. I’m sure they could be even more efficient if they consulted Salesforce on how managing small business works. They have some useful information on business management. Only time can tell how much technology will revolutionize the industry in the coming years. In the meantime, are you looking to maximize the efficiency of your trucking company? Talk to Easy Freight Factoring, let us get you a freight factoring program with total flexibility, and start expanding your trucking company today.