February 21, 2024

CloudTrucks launches new offerings, acquires Shipwell’s brokerage


Trucking technology provider CloudTrucks recently acquired the brokerage arm of SaaS provider Shipwell to give its driver network more consistent loads and revenue streams.

“We have been obsessing over what truck drivers need in the market,” CloudTrucks CEO and co-founder Tobenna Arodiogbu told FreightWaves.

“As things started to turn in the market, I think there was more and more of a need for stability and consistency for our drivers. That is why we decided to acquire Shipwell’s brokerage arm as a way to provide more quality loads to drivers and provide more consistency working with the brokerage,” he explained.

A new solution

Using the acquired brokerage, CloudTrucks has created a new offering, CT Exchange, for its carrier users. 

The company currently offers three services to carriers: Virtual Carrier, its leasing service; Flex, its TMS; and CT Credit, its credit card solution.

Until recently, CT Credit also offered a factoring service, although CloudTrucks announced in December it would be handing that off to its factoring partner RTS Financial to focus on building new products and services like CT Exchange, Arodiogbu told FreightWaves.

“CT Exchange allows us to have a portion of our freight come directly from shippers, and we can offer those to our internal driver base. This gets them a lot closer to the direct shipper experience to ensure that those drivers have more consistency in the freight that they are booking,” he said.

This reliability not only entails a higher frequency of loads during slower market periods but also offers the opportunity to interact with familiar shippers, routes and individuals more frequently. This helps mitigate the daily challenges of trucking, such as detention, parking issues and empty miles.

CloudTrucks also released a new service in January called its Guaranteed Revenue Program to help with market lulls.

This program offers owner-operators an opportunity for more predictable earnings typically associated with company driving roles. Participants who meet their weekly mileage targets can earn competitive rates that exceed recent spot market averages.

According the CloudTrucks, the program provides mileage-based revenue guarantees, offering a weekly revenue guarantee of $4,500 for drivers averaging 2,000 loaded miles ($2.25 a mile) over two-week periods and $3,250 for those averaging 1,500 loaded miles ($2.16 a mile) each week.

“Something else we noticed as we reviewed internal data is how drivers maneuver through current market conditions. If they end up in a bad market, they just sit and wait for that perfect load. One or two days go by and before you know it, they’re behind. This starts to hurt their ability to keep up with their various expenses. So with the Guaranteed Revenue Program, we give them peace of mind to get back on the road and keep moving,” Arodiogbu said.

For its part, Shipwell plans to focus on its technology endeavors. According to the company, “this deliberate reallocation of focus and resources towards its SaaS capabilities enables Shipwell to pioneer innovations, forge groundbreaking partnerships, and introduce advanced integrations.”

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