Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Freight-Matching Tech Firm Cargomatic Gets Funds for Expansion

Cargomatic, a freight-matching tech startup founded in 2013, is getting a second wind with $35 million in new backing.

August 15, 2018
Freight-Matching Tech Firm Cargomatic Gets Funds for Expansion

Cargomatic focuses its freight-matching on the local and drayage markets.

Image via Cargomatic

2 min to read


Uber Freight may be doubling down on its freight-matching business, but it faces a crowded field, and now an early entrant that has had a rocky start, Cargomatic, is getting a second wind, raising $35 million in new backing.

Ad Loading...

Founded in 2013 by a tech entrepreneur from Silicon Valley and a logistics expert from Los Angeles, Cargomatic says it seamlessly connects shippers and carriers through its web and mobile apps, helping truckers grow their businesses and shippers track their freight in real time. It focuses on the fragmented short-haul and drayage trucking markets. Currently operating in Los Angeles, San Francisco, Chicago, Seattle, Dallas, Houston and New York, Cargomatic is expanding across the U.S. with plans to expand internationally.

Ad Loading...

The company was struggling just two years ago, when the Wall Street Journal reported that Cargomatic was running out of cash, had laid off more than a third of its staff, while its chief operating officer and an interim chief financial officer resigned in rapid succession.

This week, the Journal reported that Cargomatic has installed new leadership, upgraded its technology, and focused on landing large customers with a steady flow of freight, “We’re doing dramatically more business. We’re doing about 8 to 10 times the volume we were,” Richard Gerstein, the company’s chief executive, told the paper.

The new Cargomatic financing is led by funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing, along with Canaan, Genesee & Wyoming, Xplorer Capital, and Muse Family Enterprises. 

This follows an investment earlier this year from Genesee & Wyoming, which also announced it would add the Cargomatic to its platform as an extension of G&W’s rail service at terminal and transload locations across its U.S. rail network.

"Local trucking is a $70 billion industry in the U.S., and small-fleet trucking companies handle 80% of deliveries in metropolitan markets,” said Richard Gerstein, CEO of Cargomatic, in a press release. His company, he said, is addressing the industry’s largest pain points “through a unique combination of deep mobile and enterprise technology and the robust logistics support necessary for managing the intricacies of short-haul trucking.”

Ad Loading...

The news comes on top of Uber’s announcement that it’s doubling down on its own freight-matching efforts, Uber Freight, with plans to double its investment in the unit to drive growth ahead of a much-anticipated initial public offering.

Freight load-matching startups have drawn about $420 million in venture-capital funding since 2011, according to research firm Armstrong & Associates.

More Fleet Management

ATA President Chris Spear.
Fleet Managementby Jack RobertsMarch 17, 2026

ATA’s Spear Warns Fuel Prices, Trade Policy, and Global Conflict Could Stall Trucking Recovery

Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.

Read More →
Illustration of author headshot with black-and-white old-fashioned rig in the background

New Entrants, Chameleon Carriers, and Safety: Is It Too Easy to Start a Trucking Company?

More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeMarch 12, 2026

Fleet Managers Invited to Apply for Exclusive HDT Exchange Event

HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.

Read More →
Ad Loading...
DAT iPhone Widget.
Fleet Managementby News/Media ReleaseMarch 12, 2026

DAT Launches iPhone Widget to Help Owner-Operators Find Loads Faster

New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.

Read More →
Optimal Dynamics Scale screen shot
Fleet Managementby News/Media ReleaseMarch 12, 2026

Optimal Dynamics Launches AI System to Help Carriers Choose Better Freight

Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.

Read More →
DAT March 2026 trucking conditions.
Fleet Managementby Jack RobertsMarch 12, 2026

DAT: Flatbed Demand Climbs as Van and Reefer Rates Soften

DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.

Read More →
Ad Loading...
YouTube thumbnail with Mike Roeth of NACFE saying "NACFE's Messy Middle: Which Fuel Wins?"
Fuel Smartsby Deborah LockridgeMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]

NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.

Read More →
Illustration of crowded New York street overlaid with dollar signs
Fleet Managementby Deborah LockridgeMarch 11, 2026

Federal Court Lets NYC Congestion Pricing Continue

A federal court ruling allows New York City’s congestion pricing program to continue, leaving truck tolls in place for fleets delivering into Manhattan.

Read More →
Fontaine Modification Access365
Fleet Managementby News/Media ReleaseMarch 10, 2026

Fontaine Modification Launches Real-Time Truck Modification Tracking Portal

Fontaine Modification has introduced a new customer portal designed to give fleets real-time visibility into the truck modification process, addressing one of the most common questions fleet managers face: “Where’s my truck?”

Read More →
Ad Loading...
FTR Tucking Conditions March 2026.
Fleet Managementby Jack RobertsMarch 10, 2026

FTR: Trucking Conditions Index Climbs to Highest Level Since 2022

Strong freight rates, rising volumes and tighter capacity push trucking conditions higher, though diesel prices could temper gains in the near term, FTR cautions.

Read More →