Flock Freight: SoftBank-Backed Freight Unicorn

The Evolving Landscape of Global Shipping and Freight

The worldwide shipping and freight sector is currently under intense scrutiny, with recent global events and disruptions creating significant supply chain challenges. While Flock Freight doesn't offer a complete solution to the overarching supply chain crisis, its innovative approach aims to accelerate delivery times and minimize waste within the system.

Securing New Funding for Growth

Having recently completed its Series C funding round, the company has successfully secured $215 million in a Series D round, spearheaded by SoftBank Vision Fund 2. This investment elevates Flock Freight to unicorn status, with a valuation exceeding $1 billion.

Introducing FlockDirect: A Novel Approach to Truckload Shipping

Flock Freight has pioneered a software-enabled “shared truckload” service known as FlockDirect. This system functions similarly to ride-sharing, enabling shippers to consolidate their goods and bypass traditional terminal and hub transfers.

The company leverages sophisticated probability pricing algorithms to aggregate mid-sized freight shipments from various shippers traveling along similar routes.

Benefits for Shippers and Carriers

Both customers and transportation providers experience advantages through this model. Shippers benefit from reduced expenses associated with multiple handling stages and avoid paying for unused trailer capacity.

Carriers, in turn, maximize truck utilization by achieving full loads. Flock Freight further enhances cost efficiency with its “prebate” program, offering additional savings for shipments under 40 feet in length and 36,000 pounds in weight.

Sustainability and Environmental Impact

The advantages extend beyond financial gains. Flock Freight asserts that its technology significantly lowers carbon emissions – by as much as 40% – when compared to conventional hub-and-spoke shipping methods.

To date, the company estimates it has mitigated over 15,000 tons of emissions.

Expansion Plans and Future Outlook

The six-year-old startup intends to utilize the newly acquired funds to broaden its operational scope and expand its workforce, particularly with the opening of a new office in Chicago this year.

Investor Confidence and Participation

SoftBank demonstrated early confidence in Flock Freight by leading the $113.5 million Series C round last year. This latest funding round also welcomed Susquehanna Private Equity Investments as a new minority investor, alongside contributions from Eden Global Partners.

Existing investors, including SignalFire, GLP Capital Partners, and Alphabet’s GV, also participated in this funding initiative.