The logistics industry had long been considered a “closed club” for established enterprises that have a lot of vehicles and storage facilities on their balance sheets. But the new technologies opened a door to this business sector for the new market players – ambitious logistics startups. They are confidently winning the market by creating innovative solutions which allow for the higher delivery speed and efficiency.
For this article, we hand-picked the most promising startups on today’s logistics arena.
Xeneta is a Norwegian startup that provides shipping companies and freight forwarders with freight rate data collected in real time. According to Crunchbase, the company raised almost $29 million over five funding rounds and this figure automatically makes its products worth attention.
Xeneta’s solution is a web-based platform that gives its users access to intelligent pricing data and, thus, allows them to benchmark their ocean and air freight market rates. Specifically, Xeneta provides freight forwarders with an opportunity to compare their rates to the average rates on the market, analyze market movements, and reveal the hidden potential in their freight spend. Not only does this help freight forwarders improve performance and optimize costs but it also ensures pricing transparency across the whole industry.
fliit is a food logistics startup located in Germany that raised 10 million Euros in Series A funding in March 2019. The main purpose of fliit solution is to connect food producers with carriers in order to ensure worry-free and effective delivery of fresh produce. So, basically, it works similarly to Uber Eats or Glovo but on the B2B arena.
Specifically, with the fliit platform shippers can order transportation in advance or spontaneously as they need it. The system will then search for the offers from available carriers which fit a client’s request best. While the delivery is being executed, the shipper has an opportunity to monitor its progress, status, and other indicators. On the other end, carriers benefit from using the fliit solution as well since it offers them an easy way to find the orders.
Zencargo is another logistics tech startup that has the potential to change the rules of the whole market. A few months ago, it raised $20 million in Series A funding and, according to Zencargo’s founder, all these funds will be spent on the enhancement of the company’s proprietary software solution.
Having used machine learning and other disruptive technologies, the startup built a platform that allows for online quotes and booking of freight forwarding services, real-time tracking of goods, and advanced analytics. Zencargo doesn’t disclose its clients but rumor has it that Amazon appears to be one of them.
Cubyn is an emerging star among shipping startups. It’s located in Paris and it has recently received an enviable amount of money, i.e. 12 million Euros, from venture investors. The company provides logistics services to e-commerce stores allowing online merchants to focus on selling rather than delivery.
The Cubyn innovative solution is, basically, a platform that can be integrated with retailer’s shop or marketplace enabling the automation of its shipping process. To ensure the speed of delivery, Cubyn system effectively leverages a vast amount of shipping data. Once a customer places an order, it’s automatically processed by a Cubyn warehouse and then the parcel is injected in the most optimal carrier’s network. As a result, customers receive their purchases much faster.
Locus.sh is an Indian logistics startup that raised $22 million in the latest funding round with the aim to expand its activity globally. The company doesn’t provide the supply chain services in the classical sense. But it offers an AI-based solution that helps businesses from FMCG, logistics, and e-commerce sectors optimize their delivery processes.
Simply put, Locus.sh’s platform allows its users to map out their logistics, plan optimal routes, track fleets, get insights and analytics on every delivery, as well as sort shipments and allocate carriers automatically. In addition, the solution facilitates the increase of sales as it considers historical data and real-life constraints, for example, time of day, seasonality, and even fatigue, to create a beat plan for field personnel.
Project44 is a Chicago-based startup that automates the cooperation between shippers and logistics service providers. As of today, the total funding it has received from venture investors amounts to $90.5 million with the largest lump of $45 million raised in the latest Series C round.
In short, Project44 offers a state-of-the-art solution that deals with key processes associated with the transportation of goods: planning, tracking, document generation, and analytics. On top of that, the company puts a strong focus on visibility and effortless real-time communication which, as they believe, eliminate most bottlenecks occurring during the delivery.
The final word
Although the entire logistics industry is going through digital transformation, tech startups remain the force that drives innovations. The main good news here is that this sector isn’t yet over-saturated with all kinds of software products which businesses need to satisfy their logistics needs. That’s why a quality solution built with advanced technologies have all chances to receive good funding from venture capitalists and flourish on the global market.