Investment accelerates on-demand and same-day freight as a new industry standard
Mothership, a short-haul freight-technology company dedicated to same-day delivery, announced it raised $76 million from Benchmark, WestCap, Bow Capital, former Con-way Freight CEO Douglas Stotlar and other leading investors. The company expects to use the capital to expand its on-demand freight platform nationwide.
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Mothership is the trusted logistics system of record for leading companies, including DoorDash, GoPuff, Harbor Freight Tools, PayPal-owned returns-logistics business Happy Returns, and others.
Mothership is the trusted logistics system of record for leading companies, including DoorDash, GoPuff, Harbor Freight Tools, PayPal-owned returns-logistics business Happy Returns, and others. The company grew at the height of the pandemic, boosting same-day last-mile revenue by more than four times and its national footprint to 26 metro areas in the U.S.
Despite growing consumer demand for quicker delivery, 74% of U.S. retailers do not provide same-day delivery, according to a 2022 survey by Roadie. As a result, consumers are left unsatisfied and abandon purchases, a 2020 McKinsey & Co. survey found.
“Businesses are under immense pressure, but many still manage their supply chain and logistics by paper or without same-day freight. They need real-time dispatch and routing and short-haul trucks to succeed and bring their goods from warehouse to consumer,” said Mothership Founder and CEO Aaron Peck. “Mothership has built the technology and network at scale to bring freight same day. We believe same-day freight is the future.”
“The last two years have taught us the importance of the supply chain. I believe Mothership is leveraging technology and a marketplace model to have a bigger impact for consumers and carriers in the short-haul and final mile,” said Benchmark General Partner Bill Gurley. “In the ongoing great logistics reshuffling, Mothership is built to help get things done in an increasingly on-demand world.”
“The e-commerce adoption curve accelerated during the COVID-19 pandemic and continues to drive logistics infrastructure growth. Mothership is well-positioned with strong leadership and best-in-class technology to bring on-demand delivery to more people,” said WestCap Founder and Managing Partner Laurence Tosi. “Mothership empowers independent and fleet truckers to optimize routes, improve service and increase revenue, much needed in our current supply chain.”
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Mothership expects to grow its product, sales and support teams in Austin and remotely to support its rapid growth. The company recently hired Kristin Alvarez as vice president of customer experience to lead customer and carrier experience as part of its expansion plans. Before joining the company, she was head of operations at Afterpay, which Block acquired.
Mothership allows businesses to deliver freight same day through automatic dispatch to the nearest carriers within their vast network. Its technology then optimally routes carriers on the most efficient route so that freight travels faster, costs less and reduces overall emissions.