Building a Real-Time Layer to Tie All of Logistics Together: Turvo Gets $25 Million

Turvo

Now, there’s an interesting logistics startup. Turvo is building a platform for collaboration across every level of logistics:

Turvo is the only real-time collaborative logistics platform that connects anyone, anywhere to move things. Turvo creates a smarter way for shippers, brokers, and carriers to seamlessly work together to get things done faster.

Turvo just raised $25 million in a Series A funding. TechCrunch:

Turvo, a two-year-old, Sunnyvale, Ca.-based company, is emerging today with an idea so ambitious that investors have provided it with $25 million in Series A funding to chase it. […]​

First, unlike companies like the freight-forwarding company Flexport or the on-demand trucking startup Transfix, which are other logistics plays with interesting businesses, Turvo isn’t looking to tackle just one part of the supply chain but rather to work across its entirety. The idea is for shippers, brokers, and carriers alike to work together in real time — using a software interface on their desktops and mobile phones that’s too simple and convenient to resist.

Toward that end, for example, it says its platform enables cross-company collaboration (think Slack, if Slack could enable employees to talk with employees of other companies about particular projects); real-time visibility (its mobile app tracks shipments from dispatch to delivery); and billing and payments (think digital invoices that can be shared instantly, and payments that can be scheduled).

​This is interesting. One problem though: Building such an all-encompassing platform also means the larger players will likely be very wary. If (if!) Turvo is successful it would become a powerful aggregator with more market power than any other company in the space. It is unlikely a DHL, UPS or FedEx will jump on board now or ever. (Unless one of them becomes a strategic investor, securing a potential take-over position.)

​But that is what makes this intriguing. The pricing model is fitting as well for starting out now:

It expects to grow quickly, in part because of its transactional business model. Customers pay a fee per shipment rather than a monthly fee, making it easy for shippers to invite other users into the business in a frictionless way.

Being the tissue that ties it all together could be very powerful if done successfully..:

No more app switching. Orders, shipments, documents, tasks, messenger, and more, all deeply integrated into the platform. Everything is connected and seamlessly works together.

..especially in a world where services like Uber and Postmates or Instacart can change the last mile significantly but need to get integrated into the supply chain first.

​A lot of companies from big players like Amazon or Alibaba to startups like Tuvo are pouring into the logistics space. And it is about time. Online retail needs a better logistics ecosystem to continue to grow as fast as it does. (and faster, we’re still on a hockeystick)

​If Turvo’s product is even half-decent and gets a bit of traction in the industry, companies like Amazon and Uber will come knocking on its door asking: “How much?”

​More on this topic:

2 comments

  1. […] Building a Real-Time Layer to Tie All of Logistics Together: Turvo Gets $25 Million […]

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  2. […] Building a Real-Time Layer to Tie All of Logistics Together: Turvo Gets $25 Million […]

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