Get All Access for $5/mo

Entrepreneurs Are Working to Uber-fy the Trucking Industry. Venice, Calif.-based Cargomatic, an app that connects local shippers with local truckers, just raised $8 million in VC funding.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Cargomatic | Facebook

There's the Uber of self-storage, the Uber of dining, the Uber of grocery shopping and the Uber of just about everything these days.

And now there's (more than one) Uber of trucking. While not as sexy as say, the Uber of hot man-dudes, trucking is a big business. The industry does hundreds of billions of dollars worth of business each year.

Related: 'We're the Uber of X!'

Today, Venice, Calif.-based Cargomatic, a mobile app that connects local shippers with local truckers, announced that it has raised $8 million in venture capital. The Series A round was led by Canaan Partners and included funding from Morado Venture Partners, SV Angel, Sherpa Ventures, Structure Capital, and Volvo Group Venture, among others.

Entrepreneurs Are Working to Uber-fy the Trucking Industry.

The Cargomatic platform allows local shippers and truckers to coordinate schedules and routes.
Image credit: Cargomatic

Cargomatic is focused on maximizing utilization and efficiency in the local shipping industry. The platform is designed to ensure that no truck drives anywhere empty and that a business that needs a load delivered can piggyback on a load already in transit, thereby getting its goods delivered more cheaply than hiring a truck to make a separate run. (Check out the handy little animated video embedded at the bottom of this post for a visual.)

Related: The Future of the Sharing Economy Is a World Built Like Bitcoin

"Trucking has long been an essential part of how business gets done, and the Cargomatic platform provides a win-win scenario for businesses who need to ship goods locally, and for truckers who have available capacity," says Hrach Simonian of the lead investing house Canaan Partners, according to a statement announcing the funding raise released today. Simonian will join the Cargomatic board.

Cargomatic is not the first startup to have the idea to Uber-fy the trucking industry. Another tech company, New York-based Transfix, is helping shippers and truckers automatically locate each other, minimizing waste and ideally, preventing truckers from driving with half-empty cargos.

Related: Zappos Is Bringing Uber-Like Surge Pay to the Workplace

Catherine Clifford

Frequently covers crowdfunding, the sharing economy and social entrepreneurship.

Catherine Clifford is a senior writer at Entrepreneur.com. Previously, she was the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Catherine attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. Email her at CClifford@entrepreneur.com. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

They Showed Up to Apple With a Product They Built in Their Dorm Room. Now These Entrepreneurs Are on the Way to Changing the Way Fans Watch Sports.

How Rahat Kulshreshtha and Gaurav Mehta launched Quidich Innovation Labs, technology that is literally changing the game of sports viewership.

Side Hustle

She Had Less Than $800 When She Started a Side Hustle — Then This Personal Advice From Tony Robbins Helped Her Make $45 Million

Cathryn Lavery built planner and conversation card deck company BestSelf Co. without any formal business education.

Leadership

Your Definition of Leadership Is Outdated — Here's How to Be a Better Leader in the Modern Workplace

In my nearly thirty years as a leader, I've focused on setting a clear vision and empowering my team to achieve our goals. We prioritize establishing shared objectives while allowing for flexibility when needed.

Business News

Barbara Corcoran Says Having These 2 Types of People in Your Business Is an 'Unbeatable Combination'

The "Shark Tank" star shared her thoughts on the benefits of having both extrovert and introvert employees in business.

Diversity

I'm Disabled — And Here Are 3 Meaningful Ways Your Company Can Foster a More Inclusive Workplace

I've lived with Spinal Muscular Atrophy, and I've seen firsthand what true inclusion can do for an organization.

Diversity

4 Ways Internalized Oppression is Holding You Back from Success — And Ways to Overcome It

For entrepreneurs of color, the pursuit of success can often feel like an uphill battle. While fellow entrepreneurs are doing well, scaling their businesses, building their teams, and getting national recognition, we might compare our business and professional trajectory to theirs and wonder why the same success hasn't happened to us.