Local trucking startup Cargomatic fetches $2.6 mln

Cargomatic has closed 2.6 million in funding. The investors included SV Angel, Morado Venture Partners, Winklevoss Capital, Structure Capital and Sherpa Ventures. Headquartered in Venice Beach, Calif., Cargomatic is an on-demand network for local truck availability.

PRESS RELEASE

VENICE BEACH, CA, June 24, 2014 — Cargomatic is Uber for local trucking. Its technology platform instantly connects local shippers with small trucking companies, bringing efficiency and transparency to a $70 billion industry ripe for innovation. Cargomatic is making local trucking easy by tackling major inefficiencies in the current infrastructure of B2B logistics, which hasn’t seen this type of change in decades.

Today Cargomatic (www.cargomatic.com) announced the official launch of its service in Southern California. Operations are centralized in Los Angeles, with a coverage area extending from Santa Barbara County south to San Diego County and east to San Bernardino County. The company plans to also begin serving the east coast of the U.S. in the coming months.

“Eighty percent of deliveries in metropolitan markets are made by small trucking companies, and they are completed in a very inefficient way,” said Cargomatic CEO Jonathan Kessler. “We address this fragmentation by bringing the sharing economy to business-to-business logistics. Cargomatic aggregates these small companies under one platform. It’s a completely underserved market that we are now ready and excited to serve.”

Cargomatic has been in beta stage since January 2014 and has already completed thousands of shipments. Hundreds of trucks on the road now use Cargomatic every day.

The company — headquartered in Venice Beach, California, the heart of LA’s thriving ‘Silicon Beach’ tech scene — has received $2.6 million in funding from investors, including SV Angel, Morado Venture Partners, Winklevoss Capital, Nicolas Berggruen, Justin Mateen, Scott Banister, Acequia Capital (Fritz Lanman & Hank Vigil), Structure Capital, and Sherpa Ventures.

“As early investors in Uber and other companies in this space, Scott Stanford and I see the great potential in Cargomatic,” said Shervin Pishevar of Sherpa Ventures. “Jonathan Kessler, Brett Parker and their Cargomatic team are poised to change an entire industry for the better, and we are happy to be along for the ride.”

For business owners, it is often challenging to find reliable carriers who can complete delivery on time, and at the right price. Meanwhile, there are thousands of trucks on the road with available space. Through Cargomatic’s easy-to-use desktop and mobile apps, shippers can now access this capacity and hire trusted drivers at great rates. Truckers win by filling their underutilized space, thus making more money — and at no cost to them.

“Cargomatic’s platform enables trucking companies to easily market their unused capacity, which allows shippers’ needs to be met more quickly than ever before. Both shippers and carriers get a real business partner in Cargomatic. We’re truly invested in each other’s success,” said Brett Parker, COO of Cargomatic.

Many first-generation Americans and recent U.S. immigrants own and operate small fleets of trucks. Cargomatic is committed to empowering these small business owners by introducing them to new technologies. The company conducts free training seminars to help drivers better understand technology tools and provides some with smartphones to get started. Cargomatic will be working with Latino leaders in the Los Angeles area to promote partnerships between the company and local Latino businesses.

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