A startup that provides business support for small trucking fleets will accelerate its expansion thanks to a $115 million venture capital round, San Francisco-based CloudTrucks said today.
The “series b” round was led by logistics sector investing powerhouse Tiger Global, with participation from Menlo Ventures, freight forwarder and customs brokerage startup Flexport, former Walt Disney Co. president Michael Ovitz, and current Opendoor CEO Eric Wu. The round also included follow-on investment from Caffeinated Capital, Craft Ventures, Khosla Ventures, Abstract, BTV, and Kindred Ventures. It follows CloudTrucks’ $20.5 million “series a” funding round in 2020, and pushes the firm to a total of $141.6 million in total capital raised.
Altogether, the backing brings two-year-old CloudTrucks to a valuation of $850 million for its "business in a box" solution for owner-operators and small trucking carriers. The firm says its technology streamlines administrative bottlenecks for processes ranging from instant payments to smart load scheduling and competitive rates. Looking ahead, the company now plans to amplify its existing capabilities, expand its technology to meet the needs of more drivers, grow its existing team, and broaden its digital integration with brokers and shippers.
“We founded CloudTrucks on the idea that the trucking industry has been rapidly changing and getting much more complex, while the owner-operators, the lifeblood of the trucking industry, were being left behind,” CloudTrucks co-founder and CEO Tobenna Arodiogbu said in a blog post. “We wanted to change that by building something from the ground up to ensure that owner-operators — and really all trucking entrepreneurs — have the tools to succeed and thrive in the industry.”
The funding brings together a collection of familiar names in the logistics finance sector. Tiger Global is known for its investments in e-commerce fulfillment provider Deliverr Inc. as well as seven other startups in the past two years, including SVT Robotics, Nuro, Ambi Robotics, Locus Robotics, Emark Trucks Inc., and Flexe.
“We’re thrilled to fund the next generation of drivers as CloudTrucks lowers the barrier of entry to trucking,” Steve Sloane, Partner at Menlo Ventures, said in a release. “Menlo has long held an interest in companies streamlining the supply chain and believes CloudTrucks is uniquely positioned to set drivers up for success at a time when they’re more indispensable than ever.”
New York-based Cofactr will now integrate Factor.io’s capabilities into its unified platform, a supply chain and logistics management tool that streamlines production, processes, and policies for critical hardware manufacturers. The combined platform will give users complete visibility into the status of every part in their Bill of Materials (BOM), across the end-to-end direct material management process, the firm said.
Those capabilities are particularly crucial for Cofactr’s core customer base, which include manufacturers in high-compliance, highly regulated sectors such as defense, aerospace, robotics, and medtech.
“Whether an organization is supplying U.S. government agencies with critical hardware or working to meet ambitious product goals in an emerging space, they’re all looking for new ways to optimize old processes that stand between them and their need to iterate at breakneck speeds,” Matthew Haber, CEO and Co-founder of Cofactr, said in a release. “Through this acquisition, we’re giving them another way to do that with acute visibility into their full bill of materials across the many suppliers they work with, directly through our platform.”
“Poor data quality in the supply chain has always been a root cause of delays that create unnecessary costs and interfere with an organization’s speed to market. For manufacturers, especially those in regulated industries, manually cross-checking hundreds of supplier communications against ERP information while navigating other complex processes and policies is a recipe for disaster,” Shultz said. “With Cofactr, we’re now working with the best in the industry to scale our ability to eliminate time-consuming tasks and increase process efficiencies so manufacturers can instead focus on building their products.”
Economic activity in the logistics industry expanded in January, growing at its fastest clip in nearly two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.
An LMI reading above 50 indicates growth across warehousing and transportation markets, and a reading below 50 indicates contraction. The LMI has remained in the mid- to high 50s range for most of the past year, indicating moderate, consistent growth in logistics markets.
Inventory levels rose 8.5 points from December, driven by downstream retailers stocking up ahead of the Trump administration’s potential tariffs on imports from Mexico, Canada, and China. Those increases led to higher costs throughout the industry: inventory costs, warehousing prices, and transportation prices all expanded to readings above 70, indicating strong growth. This occurred alongside slowing growth in warehousing and transportation capacity, suggesting that prices are up due to demand rather than other factors, such as inflation, according to the LMI researchers.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Even as a last-minute deal today appeared to delay the tariff on Mexico, that deal is set to last only one month, and tariffs on the other two countries are still set to go into effect at midnight tonight.
Once new U.S. tariffs go into effect, those other countries are widely expected to respond with retaliatory tariffs of their own on U.S. exports, that would reduce demand for U.S. and manufacturing goods. In the context of that unpredictable business landscape, many U.S. business groups have been pressuring the White House to pull back from the new policy.
Here is a sampling of the reaction to the tariff plan by the U.S. business community:
American Association of Port Authorities (AAPA)
“Tariffs are taxes,” AAPA President and CEO Cary Davis said in a release. “Though the port industry supports President Trump’s efforts to combat the flow of illicit drugs, tariffs will slow down our supply chains, tax American businesses, and increase costs for hard-working citizens. Instead, we call on the Administration and Congress to thoughtfully pursue alternatives to achieving these policy goals and exempt items critical to national security from tariffs, including port equipment.”
Retail Industry Leaders Association (RILA)
“We understand the president is working toward an agreement. The leaders of all four nations should come together and work to reach a deal before Feb. 4 because enacting broad-based tariffs will be disruptive to the U.S. economy,” Michael Hanson, RILA’s Senior Executive Vice President of Public Affairs, said in a release. “The American people are counting on President Trump to grow the U.S. economy and lower inflation, and broad-based tariffs will put that at risk.”
National Association of Manufacturers (NAM)
“Manufacturers understand the need to deal with any sort of crisis that involves illicit drugs crossing our border, and we hope the three countries can come together quickly to confront this challenge,” NAM President and CEO Jay Timmons said in a release. “However, with essential tax reforms left on the cutting room floor by the last Congress and the Biden administration, manufacturers are already facing mounting cost pressures. A 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.”
American Apparel & Footwear Association (AAFA)
“Widespread tariff actions on Mexico, Canada, and China announced this evening will inject massive costs into our inflation-weary economy while exposing us to a damaging tit-for-tat tariff war that will harm key export markets that U.S. farmers and manufacturers need,” Steve Lamar, AAFA’s president and CEO, said in a release. “We should be forging deeper collaboration with our free trade agreement partners, not taking actions that call into question the very foundation of that partnership."
Healthcare Distribution Alliance (HDA)
“We are concerned that placing tariffs on generic drug products produced outside the U.S. will put additional pressure on an industry that is already experiencing financial distress. Distributors and generic manufacturers and cannot absorb the rising costs of broad tariffs. It is worth noting that distributors operate on low profit margins — 0.3 percent. As a result, the U.S. will likely see new and worsened shortages of important medications and the costs will be passed down to payers and patients, including those in the Medicare and Medicaid programs,” the group said in a statement.
National Retail Federation (NRF)
“We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America,” NRF Executive Vice President of Government Relations David French said in a release. “But imposing steep tariffs on three of our closest trading partners is a serious step. We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses.”
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CSCMP President and CEO Mark Baxa (holding microphone) introduces a panel discussion on the state of the semiconductor industry at the inaugural meeting of the Mexico City CSCMP Roundtable.
With the inaugural meeting of the Mexico City Roundtable on January 23, the Council of Supply Chain Management Professionals (CSCMP) marked a significant step forward in its efforts to expand its presence in Latin America.
The meeting, held at the Mexico City campus of the research university Tecnológico de Monterrey, kicked off with presentations from CSCMP President and CEO Mark Baxa, Country Manager Javier Zarazúa, and Jonathan Albañil of the logistics service provider Dicka Logistics.
“This event was a remarkable milestone for CSCMP in Mexico, and I look forward to the continued growth of this exceptional community," says Baxa.
The opening presentations were followed by a preview of the “2025 State of the Global Semiconductor Supply Chain Report” by Dale Rogers, ON Semiconductor Professor of Business at Arizona State University of Arizona State University, and a Q&A session with five industry experts.
“The insights shared by Dr. Dale Rogers and the distinguished semiconductor panel underscored the critical role this industry plays on the global stage,” says Baxa.
The second edition of semiconductor report will be released in February. The first edition of the report can be found on CSCMP’s website. The report is free to CSCMP members and $299 for nonmembers.
"This report not only sheds light on the challenges and opportunities shaping the semiconductor landscape but also serves as a call to action for greater collaboration, resilience, and strategic foresight in navigating this ever-evolving sector,” says Baxa.
Mexico City is one of seven new roundtables CSCMP announced in December. The others are Monterrey, Guadalajara, Toronto, Panama City, Portugal, and Sao Paulo. More information about CSCMP roundtables can be found here.