Convoy CEO: Biggest Problem In Trucking Is NOT A Shortage Of Drivers
Dan Lewis, CEO of freight matching startup company Convoy, says the biggest problem in trucking is not a driver shortage, but a shortage of efficiency in “the whole system.”
Little Rock, Arkansas – Freight matching is being described as “the next big thing” in the trucking industry. New freight matching startup company Convoy sees a big opportunity to be a potentially dominant player in this emerging space. Convoy CEO, Dan Lewis, was interviewed on CNBC and had some interesting things to say about what he sees as the real problems and where the industry is headed.
The Big Problem Is Inefficiency
“Everybody thinks the next big thing in trucking is autonomous vehicles. We think the next big thing in trucking is automating the process of matching those hundreds of thousands, millions of trucks with all of the freight that needs to be moved every day,” Lewis told CNBC. Lewis says the biggest problem in trucking is the inefficiency in the way freight is booked and shipped. “Trucks are running down the highway empty, they’re sitting for hours at facilities,” he said. “You can generate 20, 30 percent more capacity just by running the whole system more efficiently.”
If you are not familiar with Lewis, he’s not exactly a life-long trucking guy. He left Amazon to head Convoy because he said he saw problems in the trucking industry that he believes technology can be deployed to help “create better experiences.” He said what he learned from his mentor Jeff Bezos, founder of Amazon and the richest man in the world, is that “there is no destination” to solving the perpetual problems in trucking, but through better technology those issues can be alleviated over time.
Convoy Is Backed By Big Money Players
If you are wondering, yes, Bezos is a big investor in Convoy. In fact, Convoy has the backing of some big-time investors such as Bill Gates, founder of Microsoft, Salesforce CEO Marc Benioff, Howard Behar, former president of Starbucks, and Dropbox CEO Drew Houston. Earlier this year Convoy announced it had raised an additional $185 million in another investment round putting its total reported money raised at $285 million. The company is reportedly valued at 1 billion dollars post money evaluation.
What Will Be The Immediate Impact Of Autonomous Trucks?
Lewis did have a strong message for those who believe autonomous trucks will replace drivers soon. “It will be a very, very long time before there is not a driver in the truck,” he said. The impact of autonomous trucks, Lewis believes, will be most felt in the hours-of-service regulations. “I think autonomous trucking will extend the hours of service… the number of hours a driver will be able to drive in a day.”
Watch the entire interview in the video above shared courtesy of CNBC.
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