SmartHop raised a $30 million Series B financing round, bringing the company's total funding to $46 million following a $12 million Series A last year.
The startup's main offering is its smart dispatch service, which recommends loads to truck drivers that maximize profits and travel time based on their truck capacity, what cities they are driving through and other details. With the fresh capital, SmartHop wants to focus more on its fintech products, like the company's fuel card program that offers fuel discounts and other perks.
The prices of fuel and insurance premiums within the trucking industry have been rapidly rising and impacting the bottom lines of small trucking companies disproportionately and SmartHop just conducted a survey that found fuel and insurance costs are their top two concerns.
The company says that small trucking companies have less power to negotiate fuel rates ahead of time because of the high diesel prices. Smaller companies can get better rates if they have access to a large network of brokers, freight marketplaces and partners.
Smaller trucking companies, which are majority owner-operators, can benefit from a variety of dispatch and financial products from other companies.
According to a statement from the company, SmartHop will use the funds to scale its platform and grow its team.
It is not an easy job. As they spend hours in social isolation and physical discomfort, it tasks the bodies and minds of truckers. The stress of searching through websites and apps of thousands of brokers to make deals, plan routes and try to have some semblance of control over their income is not to mention.
According to the American Trucking Associations, last year there was a record deficit of 80,000 drivers in the United States. SmartHop's latest round shows that making the job easier for the average trucker is the priority at a time when funding for self-guided freight is increasing.
SmartHop's business model is future-proof. SmartHop's service is relevant for trucking companies that decide to manage autonomously as it is for those that don't.
The Series B of SmartHop was led by Sozo Venture and included existing investors, as well as angels from the logistics and trucking industry.
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