Logistics startup Zerobroker recently secured $6.5 million in seed funding to enhance its AI-powered platform, which aims to eliminate freight brokers from the shipping process. The funding round saw participation from prominent investors including Flexport, FundersClub, Streamlined Ventures, and more. Headquartered in San Francisco, Zerobroker’s technology is designed to drive cost reduction and streamline logistics for shippers in an industry often criticized for its lack of transparency.
The Quest for Transparency and Efficiency
“We bring transparency to an industry that historically has not been transparent,”
said Zerobroker founder and CEO Georgy Melkonyan in a recent interview with VentureBeat. The platform strives to provide clear visibility and efficiency, exposing key information regarding shippers and carriers that was previously hidden. By directly connecting shippers with carriers, Zerobroker removes the need for traditional freight brokers and their associated 20-30% commission fees. This significant cost reduction empowers shippers to lower their transportation expenses while streamlining the entire process.
“With Zerobroker, shippers can create a shipment and the system takes care of everything else – informing customers, suppliers, automating payments and paperwork,”
Melkonyan explained. The platform leverages artificial intelligence to automate repetitive tasks, such as managing freight, paperwork, and payments, contributing to a more efficient and seamless experience. Real-time visibility into shipments and compliance assurance are additional advantages provided by Zerobroker’s technology.
Rapid Growth Indicates Industry Demand
Since its launch in February 2022, Zerobroker has experienced a remarkable growth rate of 50% in customer acquisition every month while retaining all its clients. This surge in popularity underscores the strong demand for digital innovation in the logistics industry. The recent funding secured by Zerobroker will fuel further expansion and enable the startup to strengthen its engineering team. This investment will facilitate the development of advanced features for the platform, including long-term contract pricing. Zerobroker also aims to widen its support for additional freight modes such as LTL and flatbed.
“Logistics is the backbone of any economy,”
emphasized Melkonyan. The success of Zerobroker exemplifies the transformative power of AI and automation in revolutionizing traditional industries. By eliminating intermediaries and optimizing workflows, data-driven platforms like Zerobroker not only drive down costs but also enhance the overall efficiency of supply chains.
