Loadsmart, an on-demand freight startup, in action. (Photo: Loadsmart) Remember Cargomatic? The Los Angeles start-up snagged attention and investor capital by promoting itself as an “Uber for trucking” but laid off a substantial chunk of its staff a year ago after failing to attract enough customers or hit other business milestones.
Today, Cargomatic appears to be a shell of its former self. That’s not the case for other companies in the nascent on-demand freight business, which is gaining momentum like a truck on a 6 percent downgrade.
On-demand freight start-ups such as Transfix, Flexport, Loadsmart and Convoy continue to add partners, and executives at those companies maintain revenue and profits are growing as a result. Their clients include major grocery chains, consumer goods manufacturers and others using the services for full trailer-load (FTL) shipping.
Executives at the start-ups say their online platforms are attracting hundreds of carriers and thousands of drivers as truckers seek alternatives to dealing with traditional brokers to secure the most lucrative loads.
Start-ups aren’t the only ones enticed by the prospect of disrupting the $700 billion U.S. freight industry. Uber Technologies is moving into the business through its Uber Freight division, though the company won’t discuss current operations or […]