Goldman Sachs leads $10M investment in Brazilian trucking startup CargoX
CargoX, a Brazilian startup that has been described as “Uber for trucks,” is announcing that it has raised $10 million in Series B funding. The analogy is kind of irresistible, since Uber co-founder Oscar Salazary is one of CargoX’s investors — he’s certainly seen his share of “Uber for X” pitches, but he told me he sees a big opportunity here due to the fragmentation in the Brazilian trucking market.
“They don’t have the tools to talk to each other,” Salazar said. “There’s a huge information asymmetry playing an important role there. If you show me a market with information asymmetry, I’m going to show you a $1 billion opportunity.”
For the record, CEO Federico Vega (pictured above with his director of logistics Alan Rubio) said that Airbnb is probably a better analogy than Uber, but either way, the company works to connect businesses that need to ship freight with truckers who have excess capacity. Brazil reportedly has an excess of between 300,000 and 350,000 vehicles, with trucks running empty 40 percent of the time, so the goal here is to reduce the number of empty trucks on the highway, increasing revenue for truckers and reducing costs for freight owners.
Vega explained that CargoX “operates as a transportation company with no assets,” an approach that’s supposed to help with trust (if you’re shipping something, you make the deal with CargoX, not the individual truckers) and flexibility.
“We can provide our clients with 100 trucks tomorrow or one truck, because I don’t own the trucks, I own the network” Vega said. read more at techcrunch.com