A California company that markets aerodynamic devices for trucks as well as a driver engagement software platform has raised $15 million from a group of investors to grow its team and further develop its technology.
The leaders of TruckLabs, which was founded in 2014 out of Stanford University as XStream Trucking, said they plan to use the Series A funding to build out their product, sales, and engineering teams. They also plan to partner with more OEMs and invest in the research and development of their TripDynamics platform, which collects drivers’ feedback and helps measure fuel efficiency while providing live in-cab feedback.
TruckLabs’ funding round, which comes on top of the $9 million in venture backing it previously raised, was co-led by returning investors Calibrate Ventures, Autotech Ventures, and Uncork Capital. It comes shortly after CEO Daniel Burrows and his team completed a pilot of TripDynamics with New Mexico-based Mesilla Valley Transportation, which is now rolling out the system across its 1,300-truck fleet. Meanwhile, the company said its TruckWings flagship product—an aerodynamic device that automatically closes the gap between cab and trailer at highway speeds—is now being used by four of the country’s 10 largest trucking companies and by fleets that average more than 3.5 million miles per week. It also was part of the Shell Starship 2.0 fuel-efficiency project.
“We are grateful for the support of our investors, who are continuing their journey with us to help transform the trucking industry,” Burrows, who earned a Stanford MBA in 2016, said in a company release. “These latest milestones demonstrate industry confidence in our technologies and in our strategic plan to accelerate the delivery of our unique value proposition to fleets.”
In recent years, TruckLabs reshored much of its manufacturing process, which helped lower production costs and cut lead times, Burrows wrote last year in IndustryWeek (a FleetOwner sister publication). The company recently also completed a 60-truck test of TruckWings with Ryder System Inc. that it says showed a miles-per-gallon improvement of more than 4%.
“We are extremely impressed with TruckLabs’ track record of success in product development and go-to-market strategy,” said Jason Schottler, co-founder of Calibrate Ventures. “The company is well-positioned to take advantage of the growing opportunity to partner with fleets to help them save money and achieve their sustainability goals.”
