While innovation in technology has paid much attention to last-mile delivery, the middle-mile has routinely been overlooked This is the segment of the supply chain that focuses on the delivery of products from factories or seaports to fulfillment and distribution centers. Optimizing the middle-mile provides the opportunity to eliminate the massive backlogs that we’ve seen at the ports recently. Warp is a middle-mile delivery marketplace that connects shipping, carriers, and facilities in order to get shipments where they need to be quickly and efficiently. By pooling demand and consolidation points, the platform provides unprecedented transparency, tracking, and cost savings. The company recently emerged from stealth and is initially focused on the less than truckload (LTL) market, providing flexibility to smaller shippers in California, New York, and Texas that may be focused on high-volume consumables.
LA TechWatch caught up with Warp Cofounder and CEO Daniel Sokolovsky to learn more about the inspiration for the business to modernize the supply chain with technology, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
$2.4M Seed round led by Bee Investors with participation from Amplify.
Tell us about your product or service.
Warp, is a middle-mile delivery solution for shippers powered by a tech-enabled network of carriers and cross docks. Using proprietary technology, Warp connects shippers, carriers, and facilities to digitize the old school trucking model and create the most efficient routes for middle-mile freight. Warp connects all parties together with their own TMS, WMS and driver app which allows Warp customers to have pallet-level tracking throughout a shipment’s journey.
What inspired the start of Warp?
Troy Lester and I, two delivery space entrepreneurs who after spending time in last-mile, saw that the middle-mile was ripe for the same transformation and technology upgrades. We are now applying our learnings towards tackling a near
ly $2.1T size global freight market. I grew up in the world of logistics, working on my family’s courier business and often experiencing inefficiencies firsthand. Both Troy and I also operated on-demand food delivery startups, before entering eCommerce logistics.
How is it different?
The first freight network of its kind, Warp weaves together digital pooling and physical consolidation points (Warp StationsTM), to provide shippers a cost structure previously unthinkable with outdated trucking companies.
What market you are targeting and how big is it?
The $2.1 T global freight market, with a first focus on LTL.
What’s your business model?
A tech platform.
What are your post-COVID office plans??
We are renting office space at 1800 Vine Street in the Hollywood neighborhood of Los Angeles.
What was the funding process like?
We were lucky enough to partner with a firm, Bee Partners, which has funded my previous business, AxleHire. So, the process was smooth. Now the real work begins as we prepare for our Series A.
What are the biggest challenges that you faced while raising capital?
Choosing the right investors to partner with to fill in the rest of the round.
What factors about your business led your investors to write the check?
The market size for middle-mile is just enormous and there is a lot of room for modernization; freight has been notoriously behind last-mile when it comes to new technology and innovation. While there has been an explosion in last-mile technology in the last five years, Warp will help to bring the same kind of solutions to the middle-mile market which is currently lacking. Middle-mile tech has previously existed in a siloed fashion. You either get visibility or efficiency, but never at the same time from a service provider. With our technology we’re able to combine them, allowing us to tailor unique solutions for shippers based on what their priorities are (time or cost).
The market size for middle-mile is just enormous and there is a lot of room for modernization; freight has been notoriously behind last-mile when it comes to new technology and innovation. While there has been an explosion in last-mile technology in the last five years, Warp will help to bring the same kind of solutions to the middle-mile market which is currently lacking. Middle-mile tech has previously existed in a siloed fashion. You either get visibility or efficiency, but never at the same time from a service provider. With our technology we’re able to combine them, allowing us to tailor unique solutions for shippers based on what their priorities are (time or cost).
What are the milestones you plan to achieve in the next six months?
Expanding into the Chicago and Atlanta markets and finishing V1.2 of our product.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Understand your business, understand your burn, understand when you need to raise next.
Where do you see the company going now over the near term?
Geographical expansion, expanding our footprint in LA, and helping to empower “green freight”
What’s your favorite outdoor activity in LA?
Hiking to Wisdom Tree.
