FreightVana introduces fleet payment card; technical income

FreightVana's new fleet payment card.  (Photo: FreightVana)

FreightVana's new fleet payment card. (Photo: FreightVana)

Logistics provider FreightVana recently announced it is partnering with fintech provider AtoB to offer fleets a payment card and platform to manage drivers' expenses on the road.

“The small carriers and owners simply don't have the benefits or purchasing power that their large competitors do,” Shannon Breen, co-CEO and co-founder of FreightVana, told FreightWaves. “We can leverage our brand, partnerships and debt capabilities to reduce costs. … Anything we can do to pass on some savings while everyone in this industry is fighting to survive is important to us.”

Using FreightVana's Visa fuel card, powered by A to Bnot only improves carriers' financial efficiency, but also increases their time productivity.

With card use, carriers have achieved an average savings of 47 cents per gallon in fuel, as reported by the company. In addition, membership includes access to FuelMap, an app that strategically plans drivers' routes by pinpointing the most cost-efficient diesel fuel stations.

“Our network and business model are based on building these types of partnerships, and the more work we can put into that keeps us from being seen or used as a traditional transaction broker,” Breen explains.

Since FreightWaves first spoke to FreightVana from stealth mode in 2021, the company has repeatedly highlighted the freight transportation challenges that arise from freight brokers prioritizing their short-term interests. Even then, Breen said this would get in the way of true partnerships that deliver value.

A year later, the company announced plans to acquire dry van trailers to expand a new energy-only offering for both carriers and shippers, another network built to get drivers empty and back on the road and make money.

That network and offering grew when FreightVana announced it would deploy its power-only network to support trailer manufacturer Wabash's new offering, Trailers-as-a-service. These services enable shippers to minimize daily cargo management, improving the flexibility and efficiency of their operations over time.

Although the freight market is in an unfavorable state, Breen explained that these partnerships will continue and have a positive impact on FreightVana's driver network.

“I think FreighVana will be able to survive the current freight market, and when the market changes, we will be able to keep that capacity on the road and work with us, which will also keep our shippers happy. I think that's special compared to the traditional brokerage model that exists today,” said Breen.

Short bytes

SPS Commerce Inc. (NASDAQ:SPSC) completed the acquisition of Traverse systems, a SaaS platform specialized in retail supply chain management. Traverse's solutions aim to foster collaboration between retailers and suppliers, improve overall supply chain performance and enhance the consumer experience. The acquisition, valued at approximately $25 million in cash and $4.3 million in SPS Commerce shares, is expected to contribute approximately $600,000 in revenues for the second quarter of 2024 and approximately $2.9 million for the fiscal year. Projections indicate revenue growth of up to $5 million in fiscal 2025, accompanied by adjusted earnings before interest, taxes, depreciation and amortization of approximately $1.5 million.

On Monday, robotics technology Symbotic Inc. (NASDAQ:SYM) strongly announced financial performance for the second quarter of 2024. Revenue was $424 million, with a net loss of $41 million and adjusted EBITDA of $22 million. CFO Carol Hibbard saw accelerated deployment of solutions with three OS boot and finalization cycles. CEO Rick Cohen highlighted progress in innovation and customer service. For the third quarter of 2024, Symbotic expects revenue between $450 million and $470 million and adjusted EBITDA of $27 million to $29 million.

The last Bloomberg Truckstop survey, published Wednesday, indicates Sentiment among North American carriers in the spot truckload market improved, although concerns remained. Despite a challenging quarter, 33% of carriers expect freight demand to increase over the next three to six months, with Truckstop's Market Demand Index up 9% from last year. However, uncertainty looms: 44% are unsure about their status within six months and 9% are considering leaving the sector. Higher interest rates have had an impact on business, with 78% citing higher costs. The study, which surveyed 225 owner-operators and small fleets, provides insight into the health of the spot market.

Articles by Grace Sharkey

CH Robinson uses AI tools to respond to email requests for quotes

FreightTech Friday: Wabash sees success with trailers-as-a-service

FreightTech Friday: Loadsure takes the insurtech solution to Europe

The mail FreightTech Friday: FreightVana introduces fleet payment card; technical income appeared first on Freight waves.

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