Flock Freight pulls in $113 million for software that moves freight better via shared trucks
Solana Beach firm helps pool multiple shipments together into one full truckload so goods move more efficiently
Flock Freight, a Solana Beach startup whose software helps truck fleet operators deliver products on time and damage-free, has raised $113.5 million in a new round of financing, led by SoftBank Vision Fund 2.
The funding round announced Tuesday, Dec. 1, is the largest so far this year for a San Diego-based technology startup that’s not in the life sciences sector. Biotech startups occasionally pull in very large sums from investors for drug development.
Still, Flock Freight’s round eclipses the $92 million raised in September by Seismic, which provides sales and marketing software.
The latest funding brings the total raised by Flock Freight over the last five years to $184 million. The company declined to reveal its valuation.
Flock Freight employs nearly 130 workers globally, with more than 100 employees based in San Diego County.
Founded by Chief Executive Oren Zaslansky as AuptiX and later renamed, Flock Freight’s algorithms help combine small amounts of shipped products — known as less-than-a-truckload in the industry — into a shared full truckload, like a carpool for freight.
According to the company, its algorithm pinpoints less than full truckload shipments that are headed in the same direction. It then finds the fastest routes based on first-in, last-out loading requirements.
As a result, less-than-full truckload shipments arrive faster and stay on the same vehicle, avoiding possible damage from being unloaded and transferred through the freight industry’s traditional hub and spoke system.
“Unlike the digital freight-matching category that uses technology to simply improve efficiency as workflow automation, Flock Freight uses technology to power a new shipping mode — shared truckload — that makes freight transportation more efficient,” said Zaslansky in a statement.
Flock Freight also said that its shared truck solution can reduce greenhouse gas emissions by as much as 40 percent.
The company will use the money to accelerate product development for its pooling technology algorithms.
Along with SoftBank, existing Flock Freight investors including SignalFire, GLP Capital Partners, and Google Ventures also participated in the round.
In addition, Volvo Group Venture Capital also made a minority investment. Volvo is a strategic partner of Flock Freight.
With the new funding, SoftBank Investment Advisors partner Ervin Tu will join Flock Freight’s board of directors. Japanese tech giant SoftBank created Vision Fund 2 in 2019.
“Flock Freight is the first and only freight company to create a new shipping mode, using algorithms to pool multiple shipments together and transport them along the same route,” said Tu in a statement. “As a result, Flock Freight is improving supply chain efficiency for hundreds of thousands of shippers. Our investment is intended to accelerate the company’s ability to scale its business and capture a greater share of the market.”
— Mike Freeman is a reporter for The San Diego Union-Tribune
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