Venture Capital: Flock Freight, Which Uses AI To Pool Shipments, Nabs $215M

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Flock Freight specializes in the aggregation of shipments that share trailer space in one multi-stop full truckload.

Flock Freight uses AI algorithms to optimize shipments, routes and vehicles. Its FlockDirect cloud-based product guarantees shippers shared space on a truckload by combining multiple shipments that are moving along the same route into one shared truckload. The system bypasses the inefficient Less-Than-Truckload (LTL) hub and spoke system. The company raised $215 million in a Series D that valued it at $1.3 billion and was led by existing investor Soft Bank Vision Fund 2. (WSJ)

Other participants in the funding included Alphabet Inc.’s GV investment arm, GLP Capital Partners LP and SignalFire. This round also included Susquehanna Private Equity Investments LLP and Eden Global Partners LLC.

Aggregation of parcels into full truckloads

By avoiding LTL hubs, traditionally used by LTL carriers to consolidate and reroute part-load shipments, Flock Freight cuts transit delays and reduces cargo damages. It is also more climate-friendly given that full-load trucks are more efficient compared to partly empty ones.

The procedure cuts greenhouse gas (GHG) emissions by up to 40%, according to the company’s website.

“We take the remaining 60% and offset it by supporting projects with Carbonfund.org, making FlockDirect the only carbon neutral shipping option available to shippers at no extra cost,” Flock Freight claims.

Meanwhile, globally, supply chains are under pressure due to the pandemic and other disruption factors, rendering Flock Freight’s service highly relevant because of speed and cost.

Flock Freight counts more than a 1,000 customers and is expecting to be profitable within two to three years.

It will use the new money to expand hiring by 300 new employees, and boost its speed of processing shipments by investing in its algorithm and platform.

Related Story: Mitsui OSK And Bearing Develop AI-Powered Smart Routing Of Ships To Cut Emissions

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