Trucker Path, a truckers’ assistance startup has raised $20 million in Series A round of funding led Chicago’s Wicklow Capital and China’s Renren.
A San Jose-based startup Trucker Path is an online marketplace that connects truckers with freight brokers and logistics companies which has conventionally been a manual and fragmented industry. The app helps the drivers locate the resources and information they look for like shower, parking, fuel, food etc. The app turned out to be a huge hit among the truck drivers. The startup targets at the independent big rig drivers who are owners themselves or work for smaller companies. It is through them the company makes the network available to shipping brokers throughout the commercial freight industry.
Ivan Tsybaev, founder of Trucker Path said, “When I started the company, I realized that it’s kind of hard to start building a marketplace right away, because there was a strong chicken and egg problem. So to build up a user base, I came up with idea to crowdsource parking information, which can be a real headache for sleepy truckers.”
As the app became more popular in the market with 20% growth month over month, the startup started rolling out the freight marketplace on an invitation-only basis which was called Truckloads. Freight shipping is not an easy industry. It is filled with inefficiencies and middle men. According to Tsybaev, the whole idea behind Truckloads is to put together individual and small-time drivers with people who need stuff shipped and reduce the number of firms that take commissions off the top along the way. The new funds would be use to improve the services of Truckloads and to expand the services to other places.
From the truck driver’s perspective, the platform is supposed to give the trucker one place to conduct all their business. The company says that the app is not very simple like Uber for truckers but is little more sophisticated as freight shipping is much more complicated. The drivers need to watch a video tutorial before they start using it. Till date, the startup has more than 300,000 active users, which would give it 20% of all class 8 truckers in the U.S.
Having got a good position in the market does not mean that Trucker Path is free from competition. It has plenty in the field of apps for truckers’ space. The practice of taking worker-focused approach from the beginning and embedding in the culture of trucking has served as the competitive edge for the company to succeed in building an engaged mobile workforce.