• DATVF.ATLPHL
    1.977
    0.052
    2.7%
  • DATVF.CHIATL
    1.901
    0.003
    0.2%
  • DATVF.DALLAX
    1.446
    0.003
    0.2%
  • DATVF.LAXDAL
    1.318
    -0.092
    -6.5%
  • DATVF.SEALAX
    1.017
    -0.041
    -3.9%
  • DATVF.PHLCHI
    1.094
    0.004
    0.4%
  • DATVF.LAXSEA
    2.162
    -0.084
    -3.7%
  • DATVF.VEU
    1.657
    0.020
    1.2%
  • DATVF.VNU
    1.543
    -0.029
    -1.8%
  • DATVF.VSU
    1.382
    -0.045
    -3.2%
  • DATVF.VWU
    1.589
    -0.063
    -3.8%
  • ITVI.USA
    10,426.310
    -84.160
    -0.8%
  • OTRI.USA
    12.050
    -0.110
    -0.9%
  • OTVI.USA
    10,424.030
    -83.420
    -0.8%
  • TLT.USA
    2.720
    0.000
    0%
  • WAIT.USA
    151.000
    -8.000
    -5%
  • DATVF.ATLPHL
    1.977
    0.052
    2.7%
  • DATVF.CHIATL
    1.901
    0.003
    0.2%
  • DATVF.DALLAX
    1.446
    0.003
    0.2%
  • DATVF.LAXDAL
    1.318
    -0.092
    -6.5%
  • DATVF.SEALAX
    1.017
    -0.041
    -3.9%
  • DATVF.PHLCHI
    1.094
    0.004
    0.4%
  • DATVF.LAXSEA
    2.162
    -0.084
    -3.7%
  • DATVF.VEU
    1.657
    0.020
    1.2%
  • DATVF.VNU
    1.543
    -0.029
    -1.8%
  • DATVF.VSU
    1.382
    -0.045
    -3.2%
  • DATVF.VWU
    1.589
    -0.063
    -3.8%
  • ITVI.USA
    10,426.310
    -84.160
    -0.8%
  • OTRI.USA
    12.050
    -0.110
    -0.9%
  • OTVI.USA
    10,424.030
    -83.420
    -0.8%
  • TLT.USA
    2.720
    0.000
    0%
  • WAIT.USA
    151.000
    -8.000
    -5%
NewsStartupsTechnologyTrucking

Asset-based digital marketplace Archerhub guarantees 100% hauls for all loads on its platform

The advent of digital freight matching within the trucking sector has brought order to the chaos of the spot market, as it helps usher real-time visibility into both capacity and volumes available in a market. 

However, digital freight marketplaces do not come with a guarantee that every shipper on the platform would have its loads matched to a carrier. Around 5% of all shippers on these platforms reportedly get their loads rejected or go unnoticed. 

Archerhub, a Denver-based digital freight broker, is tweaking such marketplaces by adding its own assets to the mix. The company runs its own fleet, which it uses as a backup for loads that go uncovered on its platform by carrier partners, thus guaranteeing hauls for every shipper that registers a load on Archerhub. 

“We do not use our fleet to generate revenue or profits, but we use it as a backup recovery plan for some of the freight that we have from our shippers that we need to recover,” said Nick Darmanchev, the CEO and founder of Archerhub. 

Before Archerhub’s advent into the digital freight matching space, it acquired a trucking fleet and ran it for a year to understand the difficulties associated with operating one. Darmanchev explained that this exercise led the company to realize that to keep fleets profitable it was essential for a truck to make around $1,000 a day in revenue. 

“Once we realized that, we made our dispatchers book trucks a week or two in advance, in a way where the truck ends up making $1,000 a day. We perfected that system manually and later had our development team automate the process,” said Darmanchev. 

This trial-and-error approach on understanding the pain points of fleets helped Archerhub design a system that accounted for the reality that several peer marketplaces inadvertently ignored. Owning a fleet helped the startup transition into a “recovery program” in which it can guarantee load pickup to every shipper on its platform. 

“We have an algorithm that constantly looks for different trucks while the load is in transit. For example, if the truck is not showing up, we will be able to spot that a load on this truck is falling behind and that the driver is not going to make it on time for the pickup. We then immediately look for another truck on the market,” said Darmanchev. 

If the system fails to pinpoint a truck on the market, Archerhub turns to its own fleet and sends it to the spot to pick up the load and deliver it on time to its destination. 

“The system constantly sources for truck capacity from outside carriers regardless of whether the truck is fine and in transit. We’re still looking for trucks until that load gets delivered,” said Darmanchev. “If the truck breaks down midway, we already have a database of available empty trucks that might take this load. If that does not pass, we look into our own fleet.”

Archerhub is also working on pushing its transportation management system (TMS) to the market. Darmanchev explained that Archerhub addresses a problem that most of the current TMS solutions in the market do not — namely, the accounting that needs to be done in the operations. Accounting is especially hard on small and midsize fleets that work long hours as they lack separate teams that make sure invoices are sent on time and drivers are appropriately paid while also ensuring the overall profitability of the fleet. 

These features have helped Archerhub gain a significant customer base in quick time, accounting for around 500 customers currently. Though traction was a bit tricky at the start, Darmanchev contended that it was primarily because it took time for companies to trust Archerhub with their loads initially as it was new to the business. But once they were on board, business kept flowing. 

Another critical differentiation Archerhub has with its competitors in the market is its conviction to stay profitable right from the start rather than raise money to scale and push profitability into a distant future. 

“Archerhub is actually generating a profit. While we position ourselves to scale and grow rapidly, we also have built a financial model that helps us grow without losing money,” said Darmanchev. “We are very proud of our profit-and-loss statement; it really differentiates us in terms of how we run our business.”

Tags
Show More

Vishnu Rajamanickam

Vishnu predominantly covers technology stories from within the logistics and transportation space. He connects with key stakeholders within the freight industry, profiles startups, and brings in perspective from thought leaders in the freight space. In his spare time, he talks to plants, searches for cheap flights, and writes poetry under the sun.

6 Comments

  1. This company is full of shit and they are scam artists, I spot abot 100 lies just in this article alone, they used to run a trucking company Archer Logistics and they had a really bad SMS score so they opened under a new name HickoryTranz and renamed their Brokerage ArcherHub,

  2. Bill, you are right these guys are scam artists and this is a dangerous article. There is so much written here that it’s impossible for me to point out all the holes and lies in this story.

    1. Their carrier (Archer Atlantic Global Logistics) has a 2/5 Google review. Just read them!
    2. Prior co. closed due to bad SMS score so no biz
    3. No asset makes $1k a day consistently unless you move specialty freight (a truck can avg 500 miles per day but 400 at best in reality over a week).
    4. You’d need 10,000 assets positioned in the right places to recover loads when others fall off. Not economically viable.
    5. There is no way they drive 1,000 miles to recover a load. That leads to fast chapter 11.
    6. Number of app downloads on Google play….10 (TEN)

    So much more to say here. BEWARE. Do your due diligence people.

Leave a Reply

Your email address will not be published. Required fields are marked *

Close