Fluid Truck has built an app-based platform that aims to take away the pain and cost of owning or leasing commercial vehicles, all while grabbing market share from established companies like Penske, Ryder and U-Haul.
Now, it has the capital to help it get there. The Denver-based company said Tuesday it raised $63 million in a Series A funding round to expand its truck-sharing platform, which helps mid-mile and last-mile delivery companies remotely manage an on-demand rental fleet via web or mobile app. Private equity firm Bison Capital led the round, with participation from Ingka Investments (part of Ingka Group, the main Ikea retailer), Sumitomo Corporation of Americas and Fluid Vehicle Owners.
The investment, its first external round, comes after rapid growth at the four-year-old company. Founder and CEO James Eberhard told TC that revenue increased 100x in the last two years. That type of growth sounds promising, but the company did not provide a baseline, so it’s hard to judge scale.
With e-commerce expected to continue to rise at a global 9.5% compound annual growth rate from 2020 to 2025, the demand for accessible trucks for hire might see correlative growth. It’s no surprise that e-commerce is one of the industries Fluid Truck has targeted.
Fluid Truck, which operates in 25 U.S. markets, operates like the car-sharing company Zipcar, with a commercial bent. Businesses such as moving and e-commerce delivery companies can use the platform to rent trucks. Fluid Truck’s pitch to businesses extends beyond the “you don’t need to buy or lease” argument. The platform also allows delivery companies to dispense with having a manager on staff who would manage, maintain and eventually sell the fleet.
Businesses eager to outsource the purchasing and managing of their trucks can find fleets for hire in industrial parks and retail areas within Fluid’s service network.
“You can hop on our platform, rent a truck and be in it in a matter of minutes, which really allows businesses to scale up and scale down,” said Eberhard. “We’re watching our user behavior go from a place where they used to own every vehicle they needed at a time to a place where they’re now grabbing spare capacity off Fluid.”
Eberhard hopes to see that type of supplementary use morph into an end state where companies don’t own a single truck and run solely on Fluid Truck’s platform.
Fluid Truck argues that its tech stack, which is designed to smooth out the booking and renting process, gives it a competitive edge in a market dominated by the likes of U-Haul, Ryder and or other small depots. Eberhard said the process of going to a depot and waiting in line is slow and sloppy, whereas Fluid Truck’s app makes renting a van as easy as calling an Uber.
“We take all those complexities away and allow people to have a virtual fleet,” Eberhard told TC.
Fluid Truck’s fleet is made up of thousands — and soon to be tens of thousands — of cargo vans, pickup trucks, large box trucks and various other vehicles. The company also claims to have the largest medium-duty EV rental fleet in the United States, which it continues to expand as it works with OEMs to increase fleet capacity. Electric vehicles still make up less than 1% of its total portfolio due to the slower adoption of EVs on the commercial side.
Eberhard wants Fluid to be a dominant force in the trucking industry. But Fluid Truck is not the only truck sharing app on the streets. Competitors GoShare and Bungii have similar offerings.
This sizable round could provide an advantage as it tries to become the household name in digital truck sharing. Perhaps, as importantly, the company has the attention and investment of Ikea.
“This is another step in enabling Ikea retail to provide last mile delivery services to our customers, continue to improve on our customer promise, while also reducing our environmental footprint,” Krister Mattsson, managing director of Ingka Investments said in a statement, a comment that suggests a future partnership with Fluid Truck.
With this latest capital round, Fluid’s goal is to (you guessed it) scale outwards, with a focus on expanding the team, adding dozens more markets in the U.S. and preparing to take Fluid into the EU and Canada.
Fluid Truck will also be investing back into its own tech stack, which includes an internal proprietary telematics platform to predict and automate servicing and maintenance of the company’s fleet.