Suggested by
Tim Connors
almost 3 years ago
trucking/freight optimization
Existing Company
Existing Company
Existing Company
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Are you interested in addressing this Unmet Need?
+ Recommend someone to be a founder
CEO | Founder | Managing Partner @ Platform Venture Studio
We concluded our Stage 1 review last week and agreed to move this one forward to Stage 2!
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
Great! What is needed in stage 2? Would love to be help out in anyway needed to move keep propelling this forward. @Jeremy Burton
CEO | Founder | Managing Partner @ Platform Venture Studio
All laid out here -> https://os.platformstud.io/guild/glidepaths/2
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
Hey Team! Sorry I missed the last meeting there was a conflict in timing with a presentation I was making for my current work. I am still very interested in helping out and Kudos to you Gage on making an exchange happen. @Jeremy Burton &@Tim Connors I got feedback from Alex about highlights of the meeting including you all going back to do research to see when would be best to release this technology. I am open to help out with any research necessary with your team. Also I think a great way this technology can start being used is for companies like Jb Hunt, Xtra trailer lease etc that usually have empty trailers that need to be moved around, we could look into finding more companies that always need trailers moved around and our platform could help any one with a semi truck that needs to use a trailer from third party companies that let people utilize their trailer for a bit, and we could match them to routes that let them use the trailer deliver a load and they can hand it off to another person that is going a route that the trailer needs to be dropped off, while the current driver can pick a trailer from the other party as long as it is going on a route the driver needs to go. I can explain it better if you are open to another meeting. Thanks Team also applied for the Founder In Residence If needed for this project.
CEO @ EsoTrans
@Jeremy Burton In a stroke of random circumstance, we're actually doing a trailer exchange today. It's not how we envisioned it, and may not prove exactly the efficiency gain in the way we wanted to, but here are the circumstances:
I can discuss today the challenges I've seen in our original model and what elements need to be in-place to execute.
I think the biggest questions to solve for is: what is the profile of company, driver, customer with which the original model works best, what specific problems are we solving for - how acute are those problems (WTP for solution), and what are the best incentives to motivate participation...aside from solving the problem for the paying customer.
The practical exchanges of the trailers themselves do not seem to be as big of a hurdle.
CEO | Founder | Managing Partner @ Platform Venture Studio
Great - good to know.
CEO @ EsoTrans
@Jeremy Burton unfortunately, our customer reached out that they would not be running the route (that we planned to split) as planned this week because of a supply issue. they expect it to start back sometime next week but they're not sure when. we'll see if we can cobble together another lane in the meantime, but wanted to keep everyone abreast of the status of the test.
CEO | Founder | Managing Partner @ Platform Venture Studio
That's a shame but such is life for early-stage ideas. Thanks for the update and I hope we find an alternative.
CEO | Founder | Managing Partner @ Platform Venture Studio
@Gage Lewis should we schedule another call for next week to share results?
CEO @ EsoTrans
@Jeremy Burton I am traveling on Thursday & Friday next week, so if we can talk sometime early the following week that might be best for me. We're aiming to have our first handoff completed next week, so I plan to share the results to review prior to our call, including Hour of Service (HOS) efficiency (drive, break, on/off-duty time) of the drivers/trucks, which we're able to capture with our electronic logging device (ELD).
I am currently working with my dispatcher to coordinate these runs into our dispatch schedule so it doesn't interrupt the flow of our existing operations, so it's taking a little time. This will be MUCH easier after the first or second time. Keep in mind, we're attempting to do this coordinating 2 different customers 2 drivers, 4 legs and not including the connecting dispatches leading up and following these two specific pickups and deliveries.
Lot of moving parts, but excited to make it happen!
CEO | Founder | Managing Partner @ Platform Venture Studio
Sounds great, Gage. We'll get scheduling for the week after next.
CEO | Founder | Managing Partner @ Platform Venture Studio
@Gage Lewis - are you feeling good about the first test?
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
Hi @Gage Lewis I am open to helping out to support in anyway you need. Even if it means helping out with supplementing the pay out of pocket to help with the driver situation. We should probably schedule a call to touch base on how things are going. I also have 2 truck drivers available in case we need extra contractors to support this effort & they are flexible about locations. Look forward to reconnecting everyone @Jeremy Burton @Tim Connors @Alex Smith
CEO @ EsoTrans
@Simon Okeke , thanks - may take you up on that if needed. Are these drivers O/O w/ their own authority? Do they have their own trailers? Just trying to get sense of their profile.
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
Hey @Gage Lewis currently these drivers are looking for company driver positions, although I should have more owner operator type profiles coming in closer to end of the month. But if you just need support on the driver recruitment side. Always willing to help out on that, once I get some owner operators which I do think work better for these trials if they have they own equipment and are open to participating. Will send some your way.
CEO @ EsoTrans
@Jeremy Burton Yes (for now!), but it will take until next week most likely before test is performed...driver(s) won't be officially onboarded until tomorrow or Friday (hiring is a lengthy process). Hardest part of this test is finding suitable route/ rate to make this work, not the actual exchange. It creates a break in our typical dispatch process since this is a one-off situation. Also, pay/rate on the split route will be a typical per mile rate, not the increased rate that would reflect say a team driven load where you gain a time efficiency. May have to supplement the pay out of pocket to accommodate the drivers. I'll update specific details on the matched driver/load as soon as possible.
Scientist- Process development
@Gage Lewis On the route, if you can give me a starting place or ending place. I can get you good handoff locations
CEO @ EsoTrans
@Alex Smith Will do, thanks!
CEO @ EsoTrans
@Alex Smith What's the ideal location b/t Spartanburg, SC & Cleburne, TX...and if you can coordinate two routes, La Porte, TX and Summerville, SC. We're planning Spartanburg and La Porte being the two origination points and Cleburne and Summerville being the two destinations.
Scientist- Process development
@Gage Lewis
403 SW Frontage Rd, Winona, MS 38967 looks like the best spot. It's about a 16 hr roundtrip for the Texas side and an 18hr round trip for the SC side
CEO @ EsoTrans
Thanks. This would be a longer distance model (we had discussed 8-10 hr r/t) but the principles of time saving should be relative, even additional home-time for traditional over-the-road drivers.
Scientist- Process development
Definitely makes sense, especially in the context of longer routes
CEO | Founder | Managing Partner @ Platform Venture Studio
Good call today. Pushing ahead with first test by end of next week (Sep 9)!
CEO @ EsoTrans
We've recruited two drivers out of the Houston, TX area that will be a good match for splitting routes with our SC based drivers. While we work on onboarding them next week, we are prospecting customers with lanes/routes/rates where this test will lineup best.
CEO | Founder | Managing Partner @ Platform Venture Studio
Amazing!
CEO @ EsoTrans
Transposing some thoughts from a previous email exchange:
Visualizing a radius (maximum range) centered on a driver's domicile and then seeing where there is overlap (guess that's a venn diagram) will be important to understand the relationship/ proximity between drivers, trailer exchange points, and freight orig/dest locations.
Drivers and freight are the chicken/ egg problem to solve. You may be able to cheat a bit and find freight, like Alexander has done, in locations where there is the largest recurring volume, so recruiting a driver in those locations (orig/dest) will be the safest bet to start. Reliability of the freight (contract would be much better than spot) will provide "dedicated" lanes, which is usually ideal for a driver because of the reliability of income, familiarity with route and customer (requirements, load times, etc).
I still think there is a problem to solve around how freight is acquired. There are 3 options I can see at the moment:
1. Be a brokerage - acquire customers directly and post loads onto the platform to broker to carriers & owner operators
2. Be a carrier - pull freight down from brokerages (on load boards) and haul with your own drivers (1099 or W-2) you've matched to the freight. You can also be an agency of a larger carrier (like I am), thereby reducing liability and overhead for a 10-15% gross rev fee.
3. Be a pure platform/ marketplace - acquire carrier & owner operators to be on one side of the marketplace and acquire customers (shippers, 3PL's etc) to be on the other side posting loads
#3 is the most scalable but the most complex and probably the most expensive to achieve - typical of many marketplaces. Or, you become an integrative tool within an existing marketplace(s) (DAT, Truckstop, etc) that optimizes the function of splitting routes and matching drivers.
CEO | Founder | Managing Partner @ Platform Venture Studio
Super helpful - thanks.
My gut tells me there will be an evolution through different models as this develops.
To your last point, I don't think merely being a tool is interesting from a venture perspective - we need to be in the flow of funds, and able to make money on arbitrage, to make it big enough for venture $.
CEO | Founder | Managing Partner @ Platform Venture Studio
@Gage Lewis - wondering if you managed to get any info on the insurance aspects?
CEO @ EsoTrans
When trailer "pooling" a 53' standard van (either owning or leasing) for example, you can add multiple drivers to the roster on the policy. Controls like load/unload (self) inspections need to be in place to ensure proper responsibility for safety and damage. There's some good fleet management products out there like a feature from Fleetio that assists with inspections from a smart phone.
CEO | Founder | Managing Partner @ Platform Venture Studio
Got it. So, if we have one chassis being moved rig to rig, with changeovers between legs, we can insure the chassis and load under one umbrella, end-to-end?
CEO @ EsoTrans
Correct. Works a little different between dry van trailer and container chassis depending on who owns the container chassis...but both essentially the same.
CEO | Founder | Managing Partner @ Platform Venture Studio
Great conversation just now with @Gage Lewis - a lot of learnings from his experience with DriveMatch to help leapfrog some challenges. He'll be on next week's call too!
CEO @ EsoTrans
UF’s hub strategy for AV https://finance-yahoo-com.cdn.ampproject.org/c/s/finance.yahoo.com/amphtml/news/autonomous-trucking-future-is-almost-upon-us-uber-freight-head-says-193747353.html
CEO | Founder | Managing Partner @ Platform Venture Studio
Looking forward to seeing how we can do an initial validation of the concept in a semi-automated way.
I'd like to validate that:
Ideally, we'd also validate that the time taken is shorter and the drivers are happier.
If we can do this 10 times successfully, I think we'll feel great about making the investment to build a fuller solution.
CEO @ EsoTrans
Thought I'd add a few thoughts to the conversation. Companies like TCW do this manually in two different ways b/c there is certainly efficiency in the model. They are an asset based carrier (own a fleet of trucks) and have a combination of independent contractors or owner/ops (1099 w/ own trucks) and company drivers (W-9 driving fleet trucks)
Few things to consider:
CEO | Founder | Managing Partner @ Platform Venture Studio
The trailer question is interesting. Do the carriers and owner/ops typically own them outright, or are their loan or lease providers of trailers?
CEO @ EsoTrans
Not sure the % but a combination of owned & leased.
CEO | Founder | Managing Partner @ Platform Venture Studio
Very useful - thanks.
When you say "TCW", I'm assuming this is who you are referring to:
https://www.tcwonline.com/
CEO @ EsoTrans
Correct. Have a former ops guy from there on my team at Congaree Logistics.
Founder, MD @ PivotNorth Capital
fun chat with @Alex Smith yesterday on this! progress!
Founder, MD @ PivotNorth Capital
@Jeremy Burton had a great chat with @Simon Okeke today. would be interesting if you two and alex had a zoom.
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
It was a pleasure to connect with @Jeremy Burton & @Alex Smith Yesterday, really enjoyed our conversation and look forward to reconnecting.
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
It was a pleasure talking with you @Tim Connors I look forward to future discussions with @Jeremy Burton & Alex. Thanks!
CEO | Founder | Managing Partner @ Platform Venture Studio
Sounds good. I’m traveling currently but I’ll get the wheels moving to schedule.
Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai
Hi @Tim Connors I am the Founder and CEO of a 6 figure generating Digital Freight Brokerage still early stage and seeing some great traction. Building an AI powered Logistics Management solution that will distrupt the Trucking industry called Loadzpro and would love to learn how I could work with Platform studio on this project. My beta testing bootstrapping with my website on Jetstarlogisticz.com is doing well and we are seeing customer growth month over month. Look forward to connecting and hearing from you.
Founder, MD @ PivotNorth Capital
email me at tim@pivotnorth.com
Account Manager
Hi Tim, I love this idea. I know JB Hunt does this now but I'm not sure if only company drivers can access or Owner Operators, its called JB Hunt Load Board.
I'm also answering Saurabh comments below in red:
There is a large trucking company doing this now for their company drivers and approved Owner Operators, its called Load Board, and for the shipper side its called Carrier 360.
Catching bad guys with network science! @ Google
Thanks @Amberlee Keister - this is super helpful! It does fill in a lot of gaps I had in my understanding of the problem space.
Advisor, Product Strategy @ Various Startups
Ran into these guys at Techcrunch Mobility:
https://soloavt.com/
https://freightsafe.co/
Might be of interest to you.
Managing Director @ Pioneer Square Labs
Convoy is working part of this. Outgo (https://www.outgo.co/) (PSL Fund company) is working on another, but it's a very big industry so likely many more solutions will emerge.
Founder, MD @ PivotNorth Capital
writeup here: https://docs.google.com/document/d/13fdxoi8x1UaH-iTdzFbGtEcY4kKE5a_tFuuUVmgtAQo/edit?usp=sharing
Catching bad guys with network science! @ Google
Hi Tim, thanks for the idea and writeup on this. Sounds fascinating! I love the Pony Express analogy here - it's powerful enough in getting ahead of most questions. I read the writeup numerous times and have a couple of questions:
(I know very little about big rigs and am coming at this from a networked view of supply chains)