Japanese trading house Sumitomo Corporation has made a million-dollar investment in New York-based Transfix. The investment was made through Sumitomo’s subsidiary Sumitomo Corporation of Americas, according to 4-Traders.com.
Transfix is an online brokerage offering carriers freight matching alternatives through their mobile app.
What is online brokerage for trucking?
Transfix defined its service as online brokerage that uses a data-driven approach to matching shippers and carriers looking to cut costs and deliver goods and services faster. Carriers and shippers transact through Transfix’s mobile app.
According to Nikkei Asian Review, the company was established with Unilever as one of its first clients. As of the end of the fiscal year 2016, Transfix has a list of registered truckers totaling about 25,000. Nikkei Asian Review said the number includes both independent carriers and small-to-medium businesses with a fleet of trucks to deploy.
Through the Android and iOS compatible app, drivers are informed of the load details and street number where the shipment is to be picked up, among other features. Shippers can track the shipment from pick-up to delivery through the dashboard especially designed for multiple shipment transactions, which is available through the app or a desktop version.
Truck market expectations
Transfix handled about 23,000 shipments in 2016 4-Traders.com said.
The SC Group is getting involved in demand-based ventures as of late. Nikkei reported the partnership that its Japanese parent company secured with a shared-parking lot venue. It made the subsequent investment in Transfix as its expands it approach. The SC Group described Transfix as “an award-winning on-demand shipping marketplace” and “a recognized market leader in mobile-based brokerage” which shows the kind of trust and confidence that the corporation has in its latest partnership deal.
The amount of Sumitomo’s investment was not disclosed. There are already plans to take this mobile brokerage service to the SC Group’s home country, Japan, but no estimated time as to when it will be finalized.