Next Trucking, which matches shippers and truck carriers through an online marketplace, announced today that it has raised $21 million in funding, in a round led by Sequoia Capital. Previous investors also joined, but the startup declined to disclose which ones.
To date, the company has raised a total of $27.3 million, according to Crunchbase Inc., a crowd-sourced database that tracks start-ups. It will use the fresh injection of capital to further develop the product, ramp up operations and marketing, and expand to new markets in the U.S.
Founded in 2015 in Lynwood, California, Next Trucking connects truck carriers directly with shippers based on routes, pricing, driver behavior, and more. The concept seems much more efficient than the traditional method, which is based on shippers providing load information to brokers, who then call several truck carriers to find the cheapest option.
According to the Next Trucking’s website, its platform allows truckers to post real-time availabilities, preferred routes and rates for shippers searching for options to deliver goods.
Any eligible full truck load carrier can sign up for free to use the platform, according to Yan, as long as they meet Next Trucking’s insurance, safety, and service requirements. A mobile app is also available on both iOS and Android.
“Instead of letting the rapid decline of qualified carriers continue to potentially destabilize our supply chain and economy in general, we need to overhaul the way the industry works and empower the truckers,” Lidia Yan, chief executive said in a statement.
The system, like many others in the shared economy, is based on reviews. “We vet applicants with an implemented background check,” wrote Yan. “If the drivers receive three bad reviews, they are blocked.”
Other players in this sector include Uber Freight and Convoy, which also offer digital freight matching capabilities.
The startup currently has 45 employees.