A VC in Vacationland

Cargomatic has just raised $2.5 M from California venture seed funds SV Angel, Morado Venture Partners, and Sherpa Venturesto revolutionize local trucking operations. According to the company, 'our platform was born of our passion to solve the inefficiency and fragmentation of the local trucking industry. Simply, we connect shippers with qualified carriers who have under-utilized capacity on their trucks.'

Local marketplaces to allocate available truck capacity will increasingly emerge as both carriers and shippers seeks ways to enhance vehicle efficiency and cut costs. Linking these markets to mobile fleet management capabilities will allow even further improvement, including real time management of fleets on the road.

Like other marketplaces, the big issue is getting users to sign up. Trucking companies are easy to entice on board, but shippers are another matter. Many prefer to use traditional brokers who carefully vet their drivers to ensure that loads are delivered on time and all insurance coverages are in force. local truck capacity marketplaces will have to do the same, plus find ways to entice shippers to use the new platforms.