XStream Trucking, a design and engineering company focused on connected hardware for the commercial vehicle industry, announced today that it has secured $10.5 million in Series A funding co-led by Autotech Ventures and Calibrate Ventures, along with participation from the existing shareholders of Uncork Capital, Root Ventures, FusionX and Tandem Capital.
The funds will be used to accelerate the company’s efforts to improve fuel efficiency in the trucking industry.
XStream Trucking’s flagship technology, TruckWings, is an active-aero device that automatically closes the tractor-trailer gap on commercial trucks when the vehicle is at a certain speed and creates an estimated fuel savings of 4 to 6 percent.
The company also offers GPS-enabled software that tracks fuel savings information in real-time.
“Fuel is often the largest cost for commercial trucking fleets and our products can help large fleets save millions each year,” said Daniel Burrows, CEO of XStream Trucking, in a statement. “XStream Trucking’s proprietary technology and state of the art processes address a previously neglected area of truck aerodynamics. [This] partnership will allow us to expand our capabilities to deliver further cost-saving technology and software-based insights to America’s trucking companies.”
According to the American Trucking Associations, the industry spent more than $105 billion on diesel fuel in 2015, and fuel can account for as much as 20 percent of total operating costs. With more than two million tractor-trailers operating in the U.S., TruckWings’ technology has the potential to significantly decrease the amount of fuel used each year, and could save the commercial trucking industry between $4 and $6 billion each year.
“The trucking industry is the backbone of American commerce, so technologies that can enhance fuel economy and performance are poised to make a significant impact throughout the value chain,” said Jason Schoettler, co-founder Calibrate Ventures, in the press release.
TruckWings are currently deployed within carrier fleets that average more than one million miles per week. With current diesel fuel prices at an average of $3.14 per gallon, and with a median heavy-duty fleet fuel economy of 7.5 miles per gallon, a truck driving an average of 120,000 miles per year has a potential annual fuel savings of more than $2,000 when factoring in a conservative 4 percent efficiency increase, the company stated.
The greatest fuel savings has been proven in over-the-road tests where real-world crosswinds are taken into account, producing fuel savings beyond 5 percent on average.
“TruckWings is a revolutionary product, but the entire XStream Trucking organization represents a dedicated approach to helping fleets solve everyday challenges that save money, pay back quickly, enhance sustainability and optimize a sector that is essential to American commerce,” said Maurice Gunderson, managing director of Autotech Ventures, in the release.