24 Apr 2024
Austin, Texas-based freight brokerage and transportation management services provider Arrive Logistics received a significant capital this week, with the announcement that an investor group spearheaded by ATL Partners has made a $300 million investment into the company.
Arrive officials said that this investment is comprised of a combination of primary and secondary equity, with ATL acquiring a significant minority equity stake in Arrive, as well as the company’s largest investor. The other co-investors in this round of funding are The Baupost Group, British Columbia Investment Management Corporation, and Temasek. Arrive also noted that through this transaction veteran logistics and technology executives Andrew Clarke, Jerome Lorrain, and Paul Bell will join Arrive’s Board of Directors, and Clarke will serve as Chairman.
Prior to this round of funding, Arrive raised a total of $50 million, going back to 2018, including:
Going back to its inception in 2014, Arrive has grown from 10 employees to more than 1,000 in its Austin headquarters and Chicago office. And, with $50 million in raised capital, it has increased revenue from $530 million in 2019 to $810 million in 2020, and it said it is currently on track to top $1.2 billion in 2021.
The company said that previous rounds of funding were focused on the development of a proprietary transportation management system (TMS) comprised of machine learning and automation capabilities focused on eliminating supply chain waste, driving productivity, and enabling best-in-class services for shippers and carriers, with this investment focused on continued investments in the company’s proprietary technology, new service offerings, and expanding its growing team.
Arrive Logistics CEO and Co-Founder Matt Pyatt provided LM Group News Editor Jeff Berman with an overview of the company’s plans related to this week’s announcement, which follows below.
LM: What are the biggest benefits of this investment for Arrive’s customers?
Pyatt: The biggest benefits are related to how this funding will support our approach to service.
We are committed to hiring, training and mentoring the next generation of industry experts to solve complex problems for our partners. This funding will help us add over 1,000 additional team members every year for the next several years in roles throughout our organization, including our 24/7 service teams and coverage groups. We will continue to hire and develop the best talent in the industry across the business to ensure everything from accounting to operations is staffed to provide an exceptional freight experience.
We are also expanding our services, allowing us to serve our current and future partners in a greater capacity. Our philosophy revolves around how our partners prefer to do business so we’re committed to creating a frictionless experience from technology offerings to capacity solutions. Right now, 95% of our business is focused on full truckload. With this funding, we will expand the other 5% which is dedicated to less-than-truckload (LTL) and intermodal. We will invest more into those offerings and consider expanding into other services such as cross-border, expedited and international.
Lastly, we are investing in our technology and building digital solutions to help our partners do business the way they want to—with a seamless experience powered by tools, integrations, and processes designed for efficiency. In 2021, we are investing $20M in technology which will increase to $30M a year for the next five years. We’ll continue to invest in our internal and external technology. As one of the few brokerages with a proprietary transportation management system, we leverage our wealth of data to improve processes, provide insights to our partners and deliver the best service.
LM: Why did Arrive partner with ATL and its co-investors?
Pyatt: We partnered with ATL because of their focus and specialization in transportation, their seasoned leadership and our organizations share a similar vision for the future of Arrive.
LM: What are Arrive’s plans to increase its investment in technology, including its proprietary transportation management system?
Pyatt: In 2021, we are investing $20M in technology which will increase to $30M a year for the next five years. We’ll continue to invest in our internal and external technology, building solutions that meet and exceed the needs of our customers and carrier partners. As one of the few brokerages with a proprietary transportation management system, we leverage our wealth of data to improve processes, provide insights to our partners and deliver the best service. Our philosophy revolves around how our partners prefer to do business — so we’re committed to creating a frictionless experience with tech that empowers our partners to choose the best ways for us to meet their needs.
Original article published here: https://www.logisticsmgmt.com/article/arrive_logistics_heralds_new_round_of_investment_led_by_atl_partners_totali
