Total Energy Ventures (TEV), the venture capital arm of French oil major Total SA that invests in start-ups, has acquired an interest in OnTruck, a platform that optimises road freight shipping.
Medium-haul road freight shipping (less than 150 kilometers) is a significant and growing market. However, it is extremely fragmented, with a low level of digitalisation and 30% of trucks traveling half-empty.
Pooling shipments mean more competitive freight rates can be offered to the market, improving energy efficiency along the transportation chain, optimising fuel consumption and reducing emissions.
Founded in Madrid in 2016, OnTruck is developing a marketplace that puts businesses in touch with freight carriers and also optimises trucks’ fill rates by pooling shipments. Its founder and CEO, Inigo Juantegui, started out with a regional operation around Madrid, then Barcelona, before linking the two.
“OnTruck has developed a product that enables road freight bookings to be made virtually in real time, compared to several hours for similar companies. Its highly promising approach to pooling means empty truck space can be filled, thereby optimising costs, fuel consumption and emissions,” said Philippe Sauquet, executive vice president, Strategy & Innovation at Total. “We are extremely happy to support the development of OnTruck. Another way for Total to go further in terms of energy efficiency and explore the potential of new forms of connected mobility.”
With the capital raised, the company aims to recruit staff, improve its freight pooling algorithms and expand its network in Europe.