Oway Raises $4 Million for AI Freight Platform
- The startup aims to reduce less-than-truckload (LTL) shipping costs by leveraging artificial intelligence to connect shippers with underutilized truck capacity.
- Oway, a "rideshare freight platform" utilizing artificial intelligence (AI), raised $4 million in a seed funding round to expand its marketplace.
- The platform connects shippers with carriers, aiming to minimize empty truck space and optimize LTL freight costs.
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oway Secures $4 Million seed Round to Revolutionize LTL Freight with AI
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The startup aims to reduce less-than-truckload (LTL) shipping costs by leveraging artificial intelligence to connect shippers with underutilized truck capacity.
What Happened?
Oway, a “rideshare freight platform” utilizing artificial intelligence (AI), raised $4 million in a seed funding round to expand its marketplace. Founder and CEO Phillip Nadjafov announced the funding on LinkedIn on August 22,2024.
The platform connects shippers with carriers, aiming to minimize empty truck space and optimize LTL freight costs. Oway’s core technology uses AI to dynamically match shipments with available capacity, creating a more efficient and cost-effective transportation network.
The Problem with LTL Freight
Less-than-truckload (LTL) freight, shipments that don’t fill an entire truck, often faces inefficiencies. According to Oway, approximately 50% of all truck space in the U.S. goes empty
. This underutilization drives up costs for shippers and reduces profitability for carriers. Traditional LTL brokerage relies heavily on manual processes, leading to delays, errors, and limited visibility.
The LTL market is substantial. In 2023,the U.S. LTL market was valued at approximately $83.4 billion, and is projected to reach $108.8 billion by 2030, growing at a CAGR of 3.9% from 2024 to 2030, according to Grand View Research. This growth underscores the need for innovative solutions like oway to address existing inefficiencies.
How oway Works: An AI-Powered Marketplace
Oway’s platform functions as a digital marketplace, leveraging AI to connect shippers with carriers that have available capacity on thier routes.The AI algorithms analyze shipment details, truck locations, and real-time traffic conditions to identify optimal matches. This dynamic matching process aims to reduce empty miles, lower fuel consumption, and improve on-time delivery rates.
The benefits are two-fold: shippers gain access to competitive rates and increased capacity,while carriers can maximize their revenue by filling empty space. Oway’s website highlights that the platform helps carriers boost their earnings
and shippers reduce their freight spend
.