Nigerian-Founded Trucking Startup, CloudTrucks Raises $6.1 Million to Help Increase Revenue for Truckers in the United States
Trucking business is big business and at the root of every economy. A Nigerian, Tobenna Arodiogbu has launched CloudTrucks to meet the core needs of truckers in the United States.
There are about 3.5 million truck drivers in the United States, moving 70% of the goods transported in the US economy. Altogether, this accounts for almost $800 billion generated for the economy.
However, long hours on the road coupled with the many insurance policies and paperwork that truckers have to manage makes the business increasingly complex for truckers.
Launched recently, CloudTrucks handles the paperwork attached to the trucking business. According to Tobenna, the mission of the startup is to reduce the headache for truck drivers and put more money in their hands.
The business model is focused around the revenue, cash-flow and cost concerns of truckers. Besides handling paperwork, CloudTrucks handles payment and money issues involving insurance and others. The company integrates its payment option with the truckers bank accounts so that payment is made as easily and quickly as possible.
While CloudTrucks does not clearly state that it will source for trucking jobs for truckers signed up with it, its other provisions suggest that it will liase with companies needing trucking services and have its truckers meet the need. This is similar to the ride-hailing model that is in operation in Nigeria and other parts of the world.
“We focus on the owner-operator and small trucking companies because they are the lifeblood of the industry and facing the largest pressures with fast rising insurance rates, predatory factoring options and a quickly changing landscape.
It’s more important than ever to have someone in their corner whose incentives are 100% aligned with theirs.”Tobenna Arodiogbu Founder, CloudTrucks
Already, the trucking startup has raised funding to the tune of $6.1 million in a round led by Craft Ventures, Khosla Ventures, Kindred Ventures and Abstract Ventures.
CloudTrucks comes at a time when the input of technology in the trucking sector is still little and not widespread. The company’s solution which is based on software engineering, data science and world-class operations processes is being set up to improve working experience for truckers in the US.
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