TrueNorth raises $50 million

TrueNorth, the startup building a trucking fleet, has raised $50 million in Series B funding from former Stripe executive Lachy Groom, Sam Altman, Flexport Fund, Tribe Capital, Original Capital, K5 Global, 137 Ventures and Fifth Down Capital.

Founded in 2019, TrueNorth is looking to get truck drivers to join its fleet by offering better technology and services. It claims to help truckers manage their customers, find, reserve and coordinate loads, optimize their routes, bill their customers, and collect payment. In exchange, TrueNorth charges drivers between 15% and 18% of all the cargo they move.

There is also an insurance angle. The startup is helping truck drivers save on insurance, which could cost them $20,000 to $30,000 a year, according to co-founder and CEO Jin Stedge. By joining TrueNorth’s fleet, truckers pay $10,000 per year.

“Many of our drivers are taking home twice – some even more – than what they did previously. We increase their revenue by helping them find the highest-paying trucking jobs and making it dead-simple to book them. We decrease their costs by consolidating all vendors in one place and offering steep discounts on fuel, insurance, and equipment. Operating a single truck costs well over $100,000 a year before the driver gets paid. By offering truckers a single platform to manage their entire businesses, we help them truly understand and minimize their spend.” – in Stedge, CEO and co-founder of TrueNorth.

“Most technology companies entering the trucking space build beautiful products, but don’t solve actual problems the truckers face every day. TrueNorth focuses on making truckers more money and helps them live less stressful lives by tying everything into a single, consumer-grade platform.” – Lachy Groom.

Bottom Line: TrueNorth has around 200 drivers.