Los Angeles, CA, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Warp, a middle mile delivery solution for shippers powered by a tech-enabled network of carriers and cross docks, emerged from stealth mode today and announced the closing of a $2.4 million seed fund round led by Bee Partners with participation from Amplify, among others. Warp will use the capital from this round to build out their product, accelerate growth in their first few markets and expand with existing customers. Their first focus will be the less than truckload (LTL) freight market.
Using proprietary technology, Warp connects shippers, carriers, and facilities to digitize the old school trucking model and create the most efficient routes for middle-mile freight. The first freight network of its kind, Warp weaves together digital pooling and physical consolidation points (Warp StationsTM), to provide shippers a cost structure previously unthinkable with outdated trucking companies. Warp connects all parties together with their own TMS, WMS and driver app which allows Warp customers to have pallet-level tracking throughout a shipment's journey.
With the continued rise and evolution of eCommerce, LTL shipping options will be critical to companies competing with national brands. According to the U.S Bureau of Labor Statistics, LTL has outpaced long-haul trucking in both demand and cost over the last two years. As the concept of distributed inventory – the splitting of goods and moving product closer to the end customer – continues to rise, so does the LTL market.
Warp is the brainchild of Daniel Sokolovsky, Founder of Axlehire and Troy Lester, previously Founder of Covet Shipping (acquired by AxleHire), two delivery space entrepreneurs who after spending time in last-mile saw that the middle-mile was ripe for the same transformation and technology upgrades. The two are now applying their learnings towards tackling a nearly $2T.1 size global freight market. Sokolovsky grew up in the world of logistics, working in his family’s courier business and often experiencing the inefficiencies firsthand. Both Sokolovsky and Lester also operated on-demand food delivery startups, before entering eCommerce logistics. After AxleHire acquired Lester’s micro fulfillment business in 2019, the two worked together to push AxleHire into new verticals and sustainability partnerships, while working to quintuple the company’s revenue.
“While there has been an explosion in last-mile technology the last five years, Warp will help to bring the same kind of solutions to the middle-mile market,” says Daniel Sokolovsky, Co-Founder, Warp. “Middle-mile tech has previously existed in a siloed fashion. You either get visibility or efficiency, but never at the same time from a service provider. With our technology we’re able to combine them, allowing us to tailor unique solutions for shippers based on what their priorities are (time or cost).”
Warp is currently moving freight in California, the New York Tri-State Area and Texas with a focus on fast moving consumables from food and beverage to toilet paper and cleaning supplies. Their services include distribution to stores, micro fulfillment centers, cloud kitchens and direct injections into last-mile delivery carriers. With more distribution points than ever before, shippers are under pressure to provide faster and fresher inventory replenishments for their customers.
“The market size for middle-mile is just enormous and there is a lot of room for modernization; freight has been notoriously behind last-mile when it comes to new technology and innovation,” said Tim Smith, Partner, Bee Partners. “When Daniel and Troy brought us the idea for Warp, we knew we wanted to get in at inception. With the success these two had together at AxleHire, we’ve already seen what they can do when it comes to taking a legacy industry and applying technology to enable a better delivery experience.”
Tim Smith from Bee Partners will be joining Warp’s board of directors.
About Warp
Warp connects shippers, carriers, and facilities to digitize the old school trucking model and create the most efficient routes for middle-mile freight. The first freight network of its kind, Warp weaves together digital pooling and physical consolidation points (Warp StationsTM), to provide shippers a cost structure and flexibility previously unthinkable with outdated trucking companies. Warp is currently moving freight in California, the New York Tri-State Area and Texas.
For more information about Warp please visit www.wearewarp.com.
About Bee Partners
Founded in 2009, Bee Partners is a pre-Seed venture capital firm that partners with revolutionary founders working at the forefront of human-machine convergence across technologies that include robotics, AI, voice, i4.0, and synthetic biology. The firm leverages a singular approach to detecting new and emerging patterns of business as well as inside access to fertile but often overlooked entrepreneurial ecosystems to identify early opportunity in large, untapped markets. Bee’s portfolio companies consistently realize growth at levels that outstrip industry averages and secure follow-on capital from the world's top VCs.
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