Thousands of semi trucks that cut across the U.S. highway system each day are harboring a secret: they’re only about half full.
That inefficiency represents a multi-billion dollar opportunity. And one that a few companies like Uber Freight and Flock Freight are already chasing as part of broader business models that match truck drivers with companies selling goods.
San Francisco-based startup Oway is seeking out a narrower business model that more closely resembles Uber for freight, especially on the most inefficient long-haul routes. But it’s a model that the startup believes can scale big enough to make an impact on the country’s economy.
Oway, founded in 2023 and backed by Y-Combinator and General Catalyst, recently closed a $4 million seed round in pursuit of that goal. Founder Phillip Nadjafov told TechCrunch investors have bought into Oway’s concept because his company has already developed a way to cut the cost of shipping a pallet across the U.S. by 50%, using a clever mixture of new and somewhat old technologies.
There’s artificial intelligence, of course, in the form of machine learning that Oway developed to help find and match cargo with empty trailer space and a convenient destination (or a short detour). Oway is also automating a lot of the standard shipping and insurance documentation that goes with freight.
But Oway’s ride-share cargo pitch is made possible by what’s known as “electronic logging devices” (ELDs) that are installed on the trucks that traverse our country.
ELDs became government-mandated around a decade ago, part of a push to make trucking safer and more efficient by eliminating paper logbooks. This makes it harder for shippers and drivers to skirt the federal rules on maximum driving time, theoretically cutting down on fatigue.
Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $600+ before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW
The devices have been a source of contention for many drivers worried about excessive surveillance. And there’s some evidence that the promised safety benefits may be offset by an increase in aggressive driving since drivers can’t fudge their hours as easily.
But the devices are nonetheless the cornerstone of what Oway is doing, because ELDs also made it possible to keep tabs on the exact location of a truck in real-time.
... continue reading