Trucking Industry Investment Saw 100% YoY Increase in 2017
05 Feb 2018 • by Natalie Aster
LONDON – There is an opportunistic scene for the technology start-up companies operating in the trucking industry, with the latter being in need of a digital revolution to coordinate its supply chain and freight activities so as to minimise losses. The extensive opportunity has resulted in VC and PE financing for the sector coming from capital providers from pole to pole. In 2017, the industry raised a jar of over USD 500 million, indicating a 100% upsurge as against the preceding year. The digitisation is also boosting the prospects of EVs and self-driving trucks, something which has already been successfully introduced in Sweden by the start-up transport company Einride.
The bulk of the investment in this industry comes from large-scale e-commerce firms or retailing chains such as Amazon, Flipkart, Lidl, among others. Most growth, although, is centred in China and the USA, where cutting-edge technology, expanding infrastructure, and demand has been the key driving factor in the rise of these start-up companies.
181 investors have invested a total of USD 1.03 billion in these 20 start-ups over last 5 years. Around half of the overall investment is secured by 3 China-based start-ups such as Tu Simple, Yunmanman and Loji Logistics. Convoy, Transfix and Peloton are the most funded start-ups of the USA, with finding of USD 80 million, USD 78.5 million, USD 78 million, respectively. Over 60% of these 20 truck technology start-ups are engaged in digitising the freight brokerage sector.
More insightful information pertaining to the market is at hand in the report “Global Truck Technology Startups Report”.