Trucking technology is poised to disrupt the $1.2 trillion transportation and logistics industry. The industry has been slow to adopt technology, losing over $25 billion annually due to inefficiencies. Several startups are developing technologies like automatic load boards, Uber-like marketplaces, payment platforms, and fleet management tools to connect shippers and carriers more efficiently. Venture capital investment in trucking tech has increased significantly, with over $450 million invested since 2004, particularly in Uber-like marketplaces that aim to remove brokers from transactions. However, brokers currently maintain power due to the fragmented nature of shippers and carriers. For disruption to occur, partnerships will likely be needed and technology must address the human element through easy adoption

1. Trucking Tech: The Next Unicorn Marketplace?
Rick Zullo w/ support from Erick Goihman

2. Transportation and logistics is a large market that
has yet to adopt technology on a large scale
2
Over $25B is lost every year due to improper routing and resource utlitization
$1.2T
$651B
$53B
Transportation
Spend
Broker
Revenue
US Trucking
Market
Low Tech
Adoption
• Industry is dominated by traditional,
players that have been slow to adopt
• Matching between shippers and
carriers is done on phone or email
New Reporting
Requirements
• Increased DOT reporting and capital
requirements have pressured many
brokers and truckers
Increasing
Competition
• Large number of drivers retiring,
increasing competition for labor
Resource
Utilization
• Trucks go empty for 500+ miles /mo
• Opaque market; brokers charge
arbitrage fee of 10-30%

3. Shipper Focus Trucker Focus
Trucker tech can be broken into several distinct
sub-sectors with significant tech developments
3
These technology categories are largely being driven by mobile adoption of truckers
Automatic Load Boards
Applications where brokers post available loads for
truckers, along with basic characteristics.
Uber for Trucks
Two-side marketplaces that provide shippers with on-demand access to truckers, removing brokers from the equation.
This sector includes B2B marketplaces for both local and interstate trucking, as well ocean freight.
Payment / Compliance
Applications that facilitate payments or automate
compliance with DOT regulations for shippers.
Tracking / Visibility
Applications that provide shippers with container (box)
visibility across the supply chain.
Fleet Management
Application to help trucking companies manage their
fleets, optimize their routes, and track their drivers.

4. Shipper Focus Trucker Focus
Trucker Tech has attracted significant interest
from venture capital investors
4
In the last year, VCs have invested ~$71M in Trucker Tech
Automatic Load Boards
Uber for Trucks
Payment / Compliance
Tracking / Visibility Fleet Management
Newton Insight
Sources: CrunchBase

5. Nearly $450M has poured into tech-enabled
transportation in the last 10 years
5
Uber for Trucks has attracted a significant, and growing, portion of that capital
Sector
Uber for Trucks
The fastest growing sector, with 45% YoY funding growth, and also the
youngest companies (~3.1 years old on a weighted basis) 109
Tracking / Visibility
New reporting requirements are attracting capital to this space, even as
IoT makes 24/7 box visibility easier 97
Payment /
Compliance
This sector is relatively under-funded, but a large number of recently
founded startups are seeking to change that 8
Fleet Management
Historically the largest sector, it is currently attracting large amounts of VC
funding – but over half the sector is Telogis ($120M) 222
Automatic Load
Boards
There are no VC-backed ALBs, but many private and public companies
have developed tools in this space NA
Notes Invested ($M)
Sources: CrunchBase

6. Fleet Management is the largest category, but
Uber for Trucks is the fastest growing
6
Uber for Trucks has grown by ~90% since 2013
Fleet Management
Tracking/Visibility
Uber for Trucks
Other
0
100
200
300
400
500
2004-2007 2008 2009 2010 2011 2012 2013 2014 2015
Total VC Funding by Industry Sector ($M)
3-Year
Growth
66%
91%
4%
22%
Sources: CrunchBase

7. Brokers maintain their success because of the
fragmentation of shippers and truckers
7
Shippers Brokers Truckers
Customer Power
Competition
Industry Profits
Barriers to Entry
Supplier Power
Threat of
Substitutes
Average Average Low
• High - 1.7 Million establishments in
manufacturing, wholesale, and retail,
• Average revenue <10MM per establishment
• High - Fragmented industry (500k+)
• Local Freight: 4 major players <20%
• Long Distance: Top 50 <30%
• Local Specialized: Top 4 <10%
• Moderate - > 12996 licensed property brokers
• Top 20 make up less than 4% Rev
• Economics challenging for small players
• High - Avg. 9.656MM per establishment, only
slightly higher than broker (7.7M)
• Low switching costs -> truck driver saturation,
but little pricing variation
• Moderate– Cost to purchase a freight-load
capable truck is economically prohibitive
• Private carriers will hold more power, but there
are 21 carriers for every 1 broker
• Moderate– information opacity (hard to
uncover information)
• Large shippers will have contracts
• Low variation in pricing
• Low - Little price variation of raw materials
• Raw material index relatively stable since ‘11.
• Index dropping since ’13
• High – Top 4 truck makers have ~76.3% share
• Drivers option to Unionize via Teamsters
(<3%)
• Bound by fluctuating gas prices
• Low – largely sales and technology driven
from fragmented supplies that are easily and
affordably acquired
• Moderate– Physical goods are essential
(consumer spending has risen 14% since ‘09)
• Technological advancements may lead to
spending on intangible goods and services.
• Low – Truckers account for 68.8% of Freight
Transport (Brokers choice)
• Trucking brokerage load has increased 20%
since 2007
• Low - Uber For Trucking has received
68.45MM in funding, but represents a very
limited % of mass market freight
• Technology innovations threaten small players
• High – perfectly symmetric information due to
transparency of web
• Focus on timeliness, quality of service and
price is paramount
• Very high (75k new carriers /year)
• Economics are determined by market rates
due to intense fragmentation and competion
• Low - Shippers require timeliness and
reliability and value trusted brokers
• Limited transparency of load availability from
broker to broker
Contracting frictions protects incumbers, but weaker players are ripe for disruption

8. Closing Thoughts
8
Trucking Will
Change
Partnering =
Profit
Human Touch
Win the
Drivers
Industry dynamics demonstrate typical conditions
for disruption
Partnership with players in the market can expedite
adoption in a market that is large enough to share
Industries with low technology penetration, generally
require “hand holding” to facilitate adoption
Marketplaces are generally won through the supply
channel, so create great products that woo drivers

9. rick@lightbank.com
@Rick_Zullo