Hundreds of semi vans that minimize around the U.S. freeway machine on a daily basis are harboring a secret: they’re handiest about part complete.
That inefficiency represents a multi-billion greenback alternative. And one who a couple of firms like Uber Freight and Flock Freight are already chasing as a part of broader trade fashions that fit truck drivers with firms promoting items.
San Francisco-based startup Oway is looking for out a narrower trade fashion that extra carefully resembles Uber for freight, particularly at the maximum inefficient long-haul routes. Nevertheless it’s a fashion that the startup believes can scale sufficiently big to make an have an effect on at the nation’s economic system.
Oway, based in 2023 and subsidized through Y-Combinator and Common Catalyst, just lately closed a $4 million seed spherical in pursuit of that function. Founder Phillip Nadjafov informed TechCrunch traders have purchased into Oway’s thought as a result of his corporate has already evolved a option to minimize the price of delivery a pallet around the U.S. through 50%, the use of a artful combination of latest and fairly outdated applied sciences.
There’s synthetic intelligence, in fact, within the type of device finding out that Oway evolved to assist in finding and fit shipment with empty trailer area and a handy vacation spot (or a brief detour). Oway could also be automating numerous the usual delivery and insurance coverage documentation that is going with freight.
However Oway’s ride-share shipment pitch is made conceivable through what’s referred to as “digital logging units” (ELDs) which can be put in at the vans that traverse our nation.
ELDs turned into government-mandated round a decade in the past, a part of a push to make trucking more secure and extra environment friendly through getting rid of paper logbooks. This makes it tougher for shippers and drivers to skirt the federal regulations on most riding time, theoretically chopping down on fatigue.
Techcrunch tournament
San Francisco
|
October 27-29, 2025
The units were a supply of competition for plenty of drivers nervous about over the top surveillance. And there’s some proof that the promised protection advantages could also be offset through an build up in competitive riding since drivers can’t fudge their hours as simply.
However the units are nevertheless the cornerstone of what Oway is doing, as a result of ELDs additionally made it conceivable to stay tabs at the actual location of a truck in real-time.
With this knowledge, Oway can paintings with shippers to spot locations just about an already-planned path. When there’s empty area at the trailer — which there frequently is, in keeping with Nadjafov — Oway can assist consumers position shipment in the ones trailers at a fragment of the standard value.
The result’s Oway claims it may possibly convey the price of shifting a sub-2,000-pound palette between Los Angeles and Dallas from about $220 all the way down to as little as $60.
“You shouldn’t wish to have to shop for an entire 50-something-foot truck to transport [something] around the nation with the intention to get just right pricing,” he stated. “When you’ve got a unmarried field over 100 kilos you need to transport it around the nation, you must be capable to, now, with present generation, be capable to do this. And this can be a large drawback we’ve in The usa.”
That disconnect, Nadjafov argued, creates upper delivery charges and shopper costs, but in addition results in extra emissions and extra idle time for truckers. He believes Oway can resolve this and is already operating with large firms with 1000’s of automobiles of their fleets, regardless that he stated he can’t expose who they’re as a result of they’ve requested for the relationships to stick non-public for now.
The way in which Nadjafov pitches it, Oway’s trade fashion combines one of the most easiest sides of the 2 major techniques freight will get shipped through vans within the U.S.
One fashion is referred to as “complete truckload,” which comes to truck trailers being full of items, frequently in carrier of 1 shipper. Those shipments most often move from level A to indicate B, providing faster supply however at the next worth.
The opposite fashion is what’s referred to as “less-than-truckload” delivery, which most often comes to a couple of shippers sharing area on a unmarried truck. This lowers the fee, however it takes longer, as the products frequently have to dance between a couple of vans and warehouses earlier than making it to their vacation spot.
Nadjafov’s promise is that Oway can succeed in the rate of complete truckload delivery with the fee and dynamism of less-than-truckload. What’s extra, through delivery extra items on direct long-haul routes, that freight is much less prone to get broken because it’s no longer being unloaded and re-loaded because it is going from a truck to a warehouse and again once more.
Oway is doing all this in what Nadjafov describes as “decentralized,” which means it’s not making an attempt to shop for out whole trailers-worth of area, and is even operating with different agents within the business on most sensible of the carriers and shippers.
“We would like Oway to be versatile in order that someday new companies and industries may well be constructed at the novel programs of this infrastructure,” he stated.
Nadjafov stated Oway has already gained hobby from firms in different nations, however that his startup is concentrated at the U.S. for now — partly as a result of Oway is handiest 12 other folks, but in addition as a result of how reliant this nation is on trucking.
“Trucking is a thousand billion greenback business and the empty area phenomenon itself is a $100 billion drawback,” he stated. “It’s going to be, I believe, an overly transformative motion for all the trade and logistics sector of The usa over the following 10 years, as a result of I consider that this will probably be mainly the de facto method that the majority companies are going to transport issues round.”
