DB Schenker is taking a $25m stake in online freight booking platform uShip Inc. as part of a series D round, having signed an exclusive service agreement with the company during 2016.
uShip has now raised $50M to date, with previous rounds led by Benchmark Capital (2005, 2007), DAG Ventures (2007), and Kleiner Perkins Caufield Byers (2013).
Last July, DB Schenker and uShip announced a milestone five-year agreement worth tens of millions to create ‘Drive4Schenker,’ an online trucking platform, powered by uShip PRO, uShip’s enterprise freight automation technology. Earlier this month, ‘Drive4Schenker’ launched in Germany and will continue to roll out across Europe, optimizing management of 5,000 loads per day with 30,000 DB Schenker transport providers.
“Expanding our successful partnership will expedite and streamline transport management and help us, as a market leader in European land transport, to handle even larger volumes of freight,” says Jochen Thewes, CEO of Schenker AG. “We also intend to quickly develop and tap new opportunities to grow outside of our traditional business models. This is our largest equity interest in a digital company to date and it shows how serious we are about innovation at DB Schenker. We’re investing in shaping the future of digital logistics.”
uShip plans to use the investment to accelerate development of its logistics software platform for key business segments, including high-volume enterprise shippers and small and midsize businesses (SMB) shipping less-than-truckload (LTL) freight.
“Major players like DB Schenker are taking advantage of technology that will automate and digitize their operations, helping them maintain market leadership and evolve with demand,” says Mike Williams, CEO of uShip. “It’s a thrilling time to be at the leading edge of this logistics transformation and to deepen our partnership through DB Schenker’s strategic investment.”
“The industry continues to see unprecedented investment in logistics technology that’s driving innovation and disruption never seen before, making transport faster, easier, more efficient, and ultimately more profitable,” says Jim Martell, executive chairman of the board at uShip.