Baton Raises $10.5M for Trucker Drop Zones

Addressing Dwell and Detention in the Trucking Sector

Within the trucking industry, both dwell and detention times represent significant obstacles to operational efficiency, profitability, and driver satisfaction. It’s estimated that over two billion hours are lost annually due to these delays. Dwell refers to time spent waiting at distribution centers or facilities, while detention is the period between the scheduled start of loading or unloading and its actual commencement.

Baton: A Novel Solution

Baton, a startup originating from 8VC’s incubator program and based in San Francisco, is focused on resolving these persistent issues faced by truckers. The company’s name alludes to its core business strategy.

Baton is establishing a network of 24-hour drop zones, facilities leased from partners, strategically located outside congested urban areas. Long-haul drivers can conveniently drop off their loaded trailers at these zones.

Subsequently, Baton collaborates with local fleets operating Class 8 trucks. These local fleets transport the freight from the drop zones to its ultimate destination.

Software and API Integration

The company has developed a sophisticated software platform. This platform seamlessly coordinates vehicles, drop zones, warehouses, and local drivers through a unified API.

Customers benefit from real-time, automated updates delivered via API as their loads are transported and delivered.

Benefits and Impact

“A remarkable amount of time is wasted in long-haul trucking,” explained co-founder Andrew Berberick in a recent discussion.

Baton’s proposition centers on eliminating wasted hours due to dwell and detention, as well as reducing time spent in traffic congestion. The company also asserts its ability to enhance driver earnings.

Drivers, often compensated by the mile rather than the hour, stand to gain from increased efficiency. Furthermore, Baton aims to contribute to a reduction in carbon emissions.

Customer Acquisition and Investment

Baton has successfully secured contracts with major long-haul trucking companies, including CRST. CRST provides freight services for prominent retailers like Walmart.

The company has also attracted significant investment from strategic partners.

Its initial seed funding round, totaling $3.3 million, was completed in December 2019. Investors included real estate corporation Prologis and 8VC.

A subsequent Series A funding round, co-led by 8VC and Maersk Growth (the venture arm of AP Moller-Maersk), has added further capital.

Series A Funding Details

Baton raised $10.5 million in its Series A round, resulting in a post-money valuation of $50 million, according to co-founders Nate Robert and Andrew Berberick.

Additional participants in the round included Prologis, Ryder, Lineage Logistics, Project44 CEO Jett McCandless, KeepTruckin’ CEO Shoaib Makani, Clarendon Capital operating partner John Larkin, I.S.G founder Trace Haggard, and Cooley LLC.

Expansion Plans

Currently, Baton operates several drop zones in the Los Angeles area. The company intends to expand its network.

Plans are underway to establish zones in Atlanta, Chicago, and Dallas within the next 12 to 18 months, as stated by Robert and Berberick.

Future Outlook and Autonomous Trucking

Baton’s immediate goal is to eliminate waste within traditional, human-driven trucking operations.

However, Robert believes the business model is well-suited to accommodate the future integration of autonomous trucks.

“The initial application of autonomous trucks will likely be limited to highway driving,” Robert noted. “A nationwide network of transfer hubs will be essential to facilitate this transition.”

Baton is currently piloting a concept called “autonomous relays” with an undisclosed self-driving truck company along the Arizona-California border.

“As automated and electric trucks become more prevalent on specific routes, Baton’s hub network and coordinating software will be recognized as vital infrastructure. Baton is enabling the shift towards automated trucking,” stated Jake Medwell, a partner and co-founder at 8VC.