This startup for trucking announced this week that it will enhance its platform so that by the end of 2020, it will offer real-time pricing for managing a freight load. This will be possible through the use of machine learning and databases.
Plus, it will be partnering with fintechs to develop a credit line for purchasing trucks this year.
In it for the long haul in Brazil
Besides visibility, efficiency is everything in cargo and logistics.
And the industry often grapples with making the most of every driver’s trip. Wherein often, their trailer is half-empty since they’re sent to pick up or drop off just one load. Due to poor connectivity, the driver and managing company are unaware that there’s another load they can move to make the most of a single trip.
Idleness is the enemy and this is the core issue tackled by Brazilian CargoX.
And ironically, it wasn’t a Brazilian that launched one of the country’s largest startups in freight. But rather it was Argentine Federico Vega who founded CargoX in 2013.
And since then, the startup has raised multiple investments. The last was in August of 2018, when it closed US$60 million. Among its investors from these rounds are big-wigs like Blackstone Group, Goldman Sachs NXTP Ventures, and Uber’s co-founder, Oscar Salazar.
The upcoming addition to its platform will feed off of databases to automatically calculate how much carrying a load will cost. Aspects like the weather, traffic, and overall demand shall be factored in to give a price. Thus substituting the traditional method of negotiating these things over the phone.
Not bad, eh?
Moreover, the startup has grown significantly though it has yet to expand beyond Brazil.
CargoX goes beyond cargo
If all of this wasn’t enough, the startup is branching out into an area commonly covered by banks: credit lines.
In 2019, it had already begun providing credit using its own reserves of money. Sources report that it dished out R$100 million (nearly US$21 million) last year. Having such a treasure trove for credit lines is a big clue to the size of its current success.
So, essentially what’ll happen is the startup’s knowledge will be applied to offer financing packages that best adapt to the trucking industry’s budget and needs.
That means trucking companies can expand their fleets and the startup will pick up interest through the loan.
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