Alphabet gets into trucking tech
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Alphabet gets into trucking tech

Google parent Alphabet has joined a list of prominent backers – including Bill Gates and Jeff Bezos – in a trucking technology venture: Convoy. The latest funding round, which saw the Silicon Valley giant add its name to Convoy’s roster of investors, values the startup at “more than $1 billion” according to Bloomberg. It’s not the first time that Alphabet has backed an Uber competitor, as relationships with that company soured. Google was an early investor in Uber, but its Waymo division now competes with Uber, and bad blood between the companies has played out in court.

Alphabet’s share price has risen by more than 11% so far this year

graph 2409 alphabet

SOURCE: Yahoo Finance

Uber rivalry aside, Convoy remains an interesting play for a market that Alphabet wants a part of. The company makes software that connects shippers to truckers in the same way that Uber and Lyft’s software connects riders to drivers. According to Convoy, its software gives shippers a few big advantages: it helps them get better prices, track deliveries, and lets smaller companies plan jobs more effectively. The company has over 500 shipping clients, including giant businesses like Unilever.

Alphabet invests in Convoy via its CapitalG growth equity fund. David Lawee, a CapitalG partner, will join Convoy’s board. According to Lawee, this investment has been a long time coming, and recent successes forced CapitalG to finally take a stake in the smaller business. He said: "It's no longer a theory that they could drive efficiencies. They are actually driving efficiencies.”

Dan Lewis, Convoy’s CEO and co-founder, explained the company’s goals, and why they’re attractive to investors: "When you think about what sucks about being a truck driver and what sucks about being a shipper, we want to actually build a bunch of software that solves a lot of those problems. When we do that, companies are more excited about working with Convoy.”

Disclosure

Dominion holds Alphabet in its Global Trends Managed Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.