Next Trucking, a technology company that connects shippers and carriers, has launched Relay, a new drayage service aimed at streamlining port trucking operations, and secured $97 million in new funding.
The $97 million brings Next’s total capital raised to more than $125 million.
“The logistics space is under more pressure than ever before – with more shipments coming into our ports than drivers and warehouses have the capacity to manage,” said Lidia Yan, CEO at Next. “We look forward to bringing new innovations to market to address this issue head on and growing our team with the best and brightest technology talent in Southern California.”
Using smart matching and predictive load technologies, Next matches truck drivers with capacity to available loads, streamlining the process and giving drivers more control.
Next will use the funding to accelerate product innovation and launch Relay, a new service designed to address the systemic congestion at shipping ports like the ports of Los Angeles and Long Beach, which account for more than 30% of all U.S. imports. Relay is designed to bring efficiency and expanded capacity for drayage, the process of moving goods from ports to a shipper’s warehouse. By combining Next’s virtual fleet and freight marketplace with owned yards, Relay effectively increases the number of trips that trucks can make to and from port, resulting in faster deliveries for shippers and greater earning potential for drivers, according to the company.
Relay is currently live at Next’s Gardena, California, facility and has already seen early success in pilot, says the company. With Relay, drayage drivers increase earnings by up to 20%, while local drivers increase earnings by up to 50%. On the supplier side, Next customers have seen 167 percent more containers pulled per truck.
In addition to the new Relay service, Next will leverage the funds from this round to expand its technology, operations, and sales teams. It expects to open more than 150 new positions in 2019.
The financing round was led by Brookfield Ventures, with participation from Sequoia Capital, GLP, and others,
“As the owners of 37 ports worldwide and the first fully automated terminal operator at the Port of Los Angeles, Brookfield knows first-hand the unique and complex challenges impacting the transportation and logistics sectors,” said Josh Raffaelli, managing director at Brookfield Ventures. “We are excited to partner with Next and are confident that its differentiated technology, strong customer base, and proven execution will enable the company to advance its position as a true innovator in this critical area.
Last year, following a February infusion of $21 million in funding led by Silicon Valley venture capital firm Sequoia Capital, the California-based company added six new roles to its executive management team.