We want to hear from you! Take our quick AI survey and share your insights on the current state of AI, how you’re implementing it, and what you expect to see in the future. Learn More
Logistics startup Zerobroker has raised $6.5 million in seed funding to expand its AI-powered platform that removes freight brokers from the shipping process. The round included participation from Flexport, FundersClub, Streamlined Ventures, and others.
The San Francisco-based startup’s technology aims to reduce costs and streamline logistics for shippers. Led by founder and CEO Georgy Melkonyan, the firm is on a mission to introduce clarity and efficiency into an industry often criticized for being opaque.
“We bring transparency to an industry that historically has not been transparent,” said Zerobroker founder and CEO Georgy Melkonyan in an interview with VentureBeat. “We show who a shipper is, who the trucker is. There is no hidden information.”
By connecting shippers directly with carriers, Zerobroker eliminates the 20-30% commission fee traditionally charged by freight brokers on each transaction. This allows shippers to lower their transportation costs significantly.
Countdown to VB Transform 2024
Join enterprise leaders in San Francisco from July 9 to 11 for our flagship AI event. Connect with peers, explore the opportunities and challenges of Generative AI, and learn how to integrate AI applications into your industry. Register Now
The platform uses artificial intelligence to automate up to 90% of repetitive tasks performed by logistics teams, such as managing freight, paperwork and payments. It provides real-time visibility into shipments and ensures full compliance.
“With Zerobroker, shippers can create a shipment and the system takes care of everything else – informing customers, suppliers, automating payments and paperwork,” Melkonyan explained. “Everyone gets notified automatically.”
Since launching in February 2022, Zerobroker has been adding 50% more customers every month and has not lost a single client. The company’s rapid growth shows the demand for digital innovation in the logistics industry.
The new funding will help Zerobroker expand its engineering team to build more advanced capabilities into the platform, like long-term contract pricing. The startup also plans to broaden support for additional freight modes like LTL and flatbed.
Zerobroker’s success demonstrates the power of AI and automation to transform traditional industries. By removing middlemen brokers and optimizing workflows, data-driven platforms like Zerobroker are driving down costs and making supply chains more efficient. As Melkonyan noted, “Logistics is the backbone of any economy.”