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How $12.58 Million in Seed Funding Accelerates Digital Transformation in a $1.6 Trillion Industry During a Global Pandemic
NEWSWIRE PRESS RELEASE UPDATED: OCT 13, 2020 09:00 PDT
The challenge COVID-19 is posing to global supply chains is unprecedented, drastically impacting demand, supply, manufacturing and transportation simultaneously. These sudden changes and resulting daily freight cost fluctuations force companies to evolve. Can new logistics technology, like ZUUM's Logistics Super Platform, funded through venture investments, help businesses survive? Will the pandemic usher in the next efficiency revolution in logistics?
“COVID-19 has interrupted global supply chains, leaving businesses scrambling for new ways to keep operations running. During this unprecedented crisis, finding innovative ways to help communities and businesses is more important than ever. Our recent funding is enabling ZUUM to focus on bringing new, more efficient real-time solutions to the logistics and transportation industry,” says ZUUM Transportation COO and co-founder Matt Tabatabai.
Transportation and logistics perform some of the most vital services in the industrial world. Logistics account for approximately 8% of all economic activity in the USA, or $1.652 trillion in expenditures last year alone, according to the CSCMP (Council of Supply Chain Management Professionals) 2020 report.
ZUUM Transportation recently completed a second round of seed funding at $8.58 million for a total raise of $12.58 million to date. The seed funding accelerates technology innovation in logistics, launching the first Logistics Super Platform (LSP). ZUUM’s LSP connects a transportation management system for shippers, a digital freight broker software, a carrier TMS, and mobile driver application with a digital freight marketplace. ZUUM provides critically needed efficiency, real-time visibility, and higher productivity to help transportation businesses survive during COVID-19 and cope with the highest freight cost fluctuations in recent history.
“We have been working with the ZUUM team to help us digitize certain aspects of our brokerage. They have been great to work with and brought immediate value and quick deployment. These guys are the real deal,” says Dan Curtis, president of BNSF Logistics.
Venture Funding Accelerates the Digital Transformation in Logistics
“We are humbled and inspired by the investors who share our vision and believe in our mission, including Estes Express Lines, BNSF Logistics, Plug and Play Ventures, Logifruit of Spain, Estes Forwarding, SAIC Ventures, and Holman Growth Ventures,” states Mustafa Azizi, CEO of ZUUM Transportation, Inc.
Transportation in the U.S. is highly fragmented, requiring the coordination of 3.5 million commercial drivers, 565,000 manufacturing businesses, 700,000 carriers, and 17,000 freight brokers. COVID-19 has amplified this fragmentation which calls for closer collaboration among all participants.
To optimize complex supply chains and to react to the challenges of this pandemic, manufacturers have been looking for new technology solutions. Many of the current logistics software companies emerged during the great recession more than 10 years ago. Since then, digital technology has evolved even further, but supply chains are still not fully integrated and digitally connected, as businesses continue to use legacy software.
A few companies are attempting to disrupt traditional freight logistics by building digital marketplaces to aggregate capacity. They rely on eliminating freight brokers to reduce cost. However, broker expertise remains essential to reacting to daily capacity and cost changes. In contrast, ZUUM is creating value by connecting all participants and creating efficiency through automation, workflow integration and transparent information flow - not just capacity aggregation. Their business model is based on partnering with shippers, brokers, carriers, and drivers and bringing their knowledge, expertise, and capacity onto one universal platform.
Digital Integration Creates Efficiency and Drives Defragmentation
Since its founding in 2016, ZUUM has grown to deliver thousands of freight-loads per month for more than 235 shippers, including several Fortune 500 companies. Freight is booked on an integrated logistics platform, matching shippers with vetted carriers. Automated bidding & dispatch, dynamic pricing, track & trace, workflow automation, document management, accounting, and predictive reports & analytics help maximize productivity. Universal connection through EDI and API connects both legacy and recent systems, including ERP, TMS, accounting, warehousing and other existing software. ZUUM offers the most comprehensive solution in the market to date and the first digital broker-in-the-box software.
"We invested into ZUUM because of the agile, comprehensive technology suite they have developed. We anticipate strong demand from shippers, brokers, and carriers worldwide. ZUUM leadership has deep industry knowledge and a true partnership mindset. We look forward to expanding our cooperation," says Pat Martin, VP Corporate Sales & Strategic Planning, Estes Express Lines (largest, privately owned freight shipping company in North America).
Solving Unprecedented Market Uncertainty and Freight Rate Fluctuations
With ongoing uncertainties in supply and demand due to COVID-19, freight rates have been fluctuating and finding capacity has become even more challenging.
ZUUM’s Logistics Super Platform is fully integrated and digitally connected, providing real-time capacity and freight visibility. Instant dynamic price quotes and automated notifications to all parties make ZUUM’s Digital Freight Marketplace the solution built for these volatile environments. Automated load matching, instant smart pricing, and tender acceptance enable fast response to freight price changes. Meeting demand efficiently and managing the transportation of goods and products from point of origin to point of consumption required a more seamless coordination of resources and businesses. ZUUM enables the efficient flow of information by connecting all logistics parties, ultimately establishing the synergy needed to drive the industry forward. ZUUM has grown rapidly since its inception and is projected to exceed a 300% growth rate in 2020.
About ZUUM Transportation Inc.
ZUUM Transportation, Inc. is a rapidly growing tech startup transforming the logistics industry. Their vision is to optimize logistics and streamline supply chains globally with one efficient, automated, and easy-to-use super platform. Centralized information flow provides actionable intelligence, capacity aggregation provides instant access to vetted carriers, and back-office automation reduces errors and maximizes productivity. ZUUM combines a digital freight marketplace with a shipper TMS, broker SaaS, carrier TMS, and mobile driver app.
ZUUM – AUTOMATE YOUR FREIGHT™