Editor’s note: This story was updated on April 14 to remove erroneous information provided by Repowr, which stated that ArcBest is a Series A investor. ArcBest is not an investor, but the company says it would consider it.
An important rule of trucking is to keep your assets active.
Now with the help of logistics platforms, like Repowr, if you can’t keep them active, there are marketplaces that will do that for you.
Repowr’s strategy of building an equipment network of trucks and trailers is taking off, and investors are beginning to catch wind of it.
On Wednesday, Repowr announced it had closed an $8 million Series A round led by transportation venture capital firm UP.Partners with participation from industry actors Crowley Maritime, Koch Disruptive Technologies, the venture arm of Trimac known as McVestCo VC, NFI Ventures, Perot Jain and 9Yards Capital.
Using the company’s platform, Repowr Connect, shippers, fleets and 3PLs can share their available assets with other network members, helping parties find on-demand capacity.
Related: Wabash’s new trailers-as-a-service platform to support FreightVana’s power-only offering
There are also many applications for a universal trailer pool. Shippers can utilize the pool to expand into new markets and regions without concern about equipment capacity, 3PLs can work with power-only carriers and offer drop-and-hook capabilities, and trucking companies can better strategize their own equipment growth.
Repowr’s carrier network today consists of 16 of the top 50 truckload carriers and others, including TuSimple, CRST, Knight-Swift Transportation and its recently acquired U.S. Xpress.
Related: U.S. Xpress’ multiyear struggle ends with acquisition by Knight-Swift
“Repowr’s innovative marketplace has enabled us to reduce cost from our own underutilized equipment, rebalance our trailer pools efficiently and start new drivers in our network cost-effectively by reducing deadhead to their first trailer. Additionally, we’ve been able to use Repowr’s network to add value back to our customers by standing up capacity quickly and cost-effectively,” said Terry Freeze, director of dedicated services at ArcBest, in the release.
| Funding details | Repowr |
|---|---|
| Funding amount | $8 million |
| Funding round | Series A |
| Lead investor | UP.Partners |
| Secondary investors | Crowley Maritime, Koch Disruptive Technologies, the venture arm of Trimac known as McVestCo VC, NFI Ventures, Perot Jain and 9Yards Capital |
| Business goals for the round | Expand pool capacity |
| Post-money valuation | $30 million* |
| Total funding | $12.77 million* |
Company executives said in the news release that Repowr will use this capital infusion to continue growing its trailer pool ecosystem and leveraging its relationship with UP.Partners, whose corporate partners include Toyota, Walmart and Hillwood.
“The UP.Partners ecosystem and mission align perfectly with Repowr’s core mission. The investment and strategic partnership will further enhance our network capabilities and help position Repowr and our customers for an even more connected, elastic and resilient supply chain,” said CEO Patrick Visintainer.
Ally Warson, partner at UP.Partners, will join Repowr’s board as part of the transaction.
“Trucking is an $870 billion market with over 13 million vehicles operating on North American roads. However, trailers are habitually underutilized and sit idle a significant percentage of the time. Repowr’s novel marketplace solution helps industry titans optimize their assets by expanding their margins with both revenue-enhancing and cost savings capabilities. We are bullish on Patrick, Spencer, and the rest of the Repowr team’s ability to build a fantastic business while bringing order and efficiency to the market,” Warson said in the release.
Watch now: How trailer pool access protect large carriers from big contract rate declines
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FreightVana’s power-only brokerage going nationwide with more than 1,000 trailers this year
Ben D
Not going to work as the trailer market continues to cool off. What driver is going to pay $45 a day to rent a trailer when brokers have the same lanes posted that are paying the driver?