Reported from supplychain247.com, Cargofy, a startup based in Cedar Rapids, Iowa, is a developer of AI technology for automation of manual labour in logistics industry. Cargofy hopes to transform trucking industries to shift into using AI powered freight broker system. A system where all brokerage process happen without the involvement of human.
Stakh Vozniak, the CEO of Cargofy decided to launch a company which provide the technological solution to simplify the freight industry for independent truck owner-operator. It is done because 80% of goods transported using freight truck, so the market size for the app is huge.
Cargofy develop a smartphone apps which provide trucker with easy access to cargo. The cargo that can be accessed by trucker is calculated based on trucks location, available equipment, shipments route and plans.
This app has 3 main phase. The first one is “request”. It is where the trucker ask for the data of available cargo from the app. Truckers input the data about their location and their trucks capacity. Second phase is “matching”. The app’s algorithm then analyze the data of thousands available cargo nearby. The result of the analysis that factor in the trucker data is the most suitable cargo for the trucker to deliver. The last phase is “deal”. The trucker confirms the order and prepare the documents. The documents is automatically generated by the apps, so the trucker can get to the cargo faster.
There are many benefit a trucker could get when they sign up for Cargofy Partner. The benefit are such as the fixed cost per mile provided by the apps which factor in the real-time condition, the guaranteed mileage per month, lower brokerage fee, virtual discount coupon, faster cargo search, payment control, trucker review and many more.
By using the neural-net to calculate the cost, Cargofy provide a fixed cost per mile (CPM) which also factors in the maintenance fee, leasing payment, depreciation, salary, and the profit for the trucker. And for the region where the shipper pays less than Cargofy’s CPM, the trucker will be compensated by Cargofy to make up the differences in the payment.
Truckers can calculate their expected monthly income if they signed up for this app. In example, if Cargofy guarantees the driver a 10,000 mile a month, with a $1.5 CPM, they could expect $15,000 income a month.
This app can instantaneously calculate the market price. The market price calculated by the AI algorithm by considering many factors such as supply/demand, price dynamics, season, weather, road condition, etc. It makes the market prices produced by the calculation is a real-time price for transporting cargo in that exact moment.
This app also reduce the expense for the trucker. With traditional dispatching company brokerage system, truck owner-operator lost more than 60% of their profit. The $200 per cargo brokerage fee that has to be paid by truck owner-operator to the broker can be omitted by using this app. This app also can find cargo to loads faster than the traditional broker system. Cargofy creates a seamless transaction model of the billing and payment method for the trucker.
Vozniak stated, “I know that driving a truck and making a decent living it is not an easy job. Almost 3% of all working Americans are truck drivers. Our mission as a company is to simplify their lives. That’s why our team created a 24/7 virtual assistant – kind of a “Siri for truck drivers” mobile app. Cargofy Partner helps truckers to search for nearby loads, generate documents, calculate routes, and save money with a virtual discount card for fuel, tires, truck maintenance and factoring fees. Our AI algorithms help truck drivers to save $18,000 per year just on brokers’ fees!”
Since the launch of the app on 2017, Cargofy has started to operate in 3 countries, US, Ukraine, and India. The company has grown to more than 20 team members. More than 400 trucker have signed up, and more than 2000 orders completed. With the revenue of more than $2.5 million in sales, Cargofy was chosen as the #2 fastest growing company in Iowa (based on Inc. 5000).
By utilizing the AI, Cargofy hopes to transform the trucking industries to use AI powered broker that can do the process faster without the involvement of human. Using truck matching system, the app will match the truck that is requesting order with available cargo. The AI powered app will take truck’s status, location, parameter, and truck’s capacity into consideration when calculating the most suitable cargo and then matches the cargo with the truck. Cargofy also implement the automatic document generation in their app, so the trucker can scan and sign document on the road, causing an almost paperless transaction.
Cargofy also provide the feeling of security in trucking business. Their app includes the order tracking feature that remove the driver’s need to pick up a phone call from broker companies while driving. The days where the cargo broker had to call the truck driver many times a day to check their location is long gone already. This app automatically track the trucker’s location using their smartphone’s GPS, so their location can be tracked in real-time.
The app also helps to review and control the payment. This really helps independent truck owner-operator to increase their reputation and credibility, it also ensure the trucker to receive the payment for their deliveries. With only 4.99% commission to Cargofy for every cargo delivered, truck owner-operator could save their money. Truckers won’t have to pay $200 per cargo to traditional broker or dispatch companies every time they receive an order for delivering a cargo.
David, a truck owner-operator from Iowa City, IA said he uses Cargofy almost every day to find cargo. “If I need an order, I place a request using Cargofy Partner. Then the mobile app does everything else”. The algorithm considers his location, preferable directions, and minimum cost per mile, and then analyzes thousands of nearby loads and chooses the most suitable ones, automatically. “Just what I need to do it confirm the proposed load and preparing for the delivery. Cargofy generates all the necessary documents instantly after approval. I worked with the brokerage company, and they charged 12% for the exact same services, but there were human factors and slow speed of execution, which I don’t find with Cargofy. The app works 24/7 and charges only 4.99%.”
With daily access to 30,000 cargo, trucker is not limited on using the virtual assistant app. By integration of load boards and gateway services such as Post Everywhere, Cargofy provide access to large number of cargo for trucker.
Cargofy has brought about a changes of paradigm and shifted the usual way of business for truck driver. The product from Cargofy will heavily affect the trucking industries.