Truckers can drive 600-650 miles per day. Who’s routing all of their stops? This week’s startup created an AI/ML platform to connect the dots.
⚾ The Elevator Pitch:
The global trucking market is valued at $1.1 trillion. That’s huge.
However, the industry has one problem, explained by the traveling salesman:
Given a list of cities and the distances between them, what is the shortest possible route to visit each city and return to the original? that visits each city exactly once and returns to the origin city?
A computationally heavy task, mapping efficient truck routes among a set of cities is hard and can cost trucking companies millions.
Strada Routing utilizes logistics AI to connect the dots. They implemented AI systems to automate load bundling (combining shipments), reduce deadhead (driving with an empty trailer), and optimize bids for routes. More than optimizing routes, Strada helps optimize for loads, supply and demand, and making sure fleets are used at full capacity.
👇 The Drop Down
Site: http://stradarouting.com/
School: Harvard
Founded: 2020
Stage: Seed
Tech trend: Logistics
Traction: Deep developed connections, several record-breaking routes optimized
Team - Harvard 2022; Computational and Applied Mathematics
Landon Smith - Founder
🔍 Paolo’s Analysis
- 🛠️ Unparalleled value
The real-world benefits of reducing cost, saving time, and lowering GHE’s are a showstopper for anyone who has been following the transportation industry. - 💰 High complexity, high reward:
Mitigating travel risk, balancing demand, and optimizing routes are useful in several emerging logistics verticals. Top-of-mind verticals are last-mile delivery, grocery, and long-haul applications. - 📈 Impact beyond efficiency:
Requiring zero or “minimal” capital expenditure to implement, Strada exemplifies the term “software eating the world”. Without the need of upgrading a carrier fleet, Strada makes it possible for transportation companies to test, learn, and implement at low risk and cost. Imagine operating a large trucking fleet and being able to save tens of millions of dollars, which could be diverted into expenditures on autonomous fleets.
Analysis provided by Paolo Campisi from Elementary Ventures, an innovation and launch consultancy helping to design and launch startups.
💡 Founders Corner
🤝 Want more?
- Check out their site
- Peruse their pitch deck
- They’re hiring!
- Read their feature on Harvard SEAS
