Live data from Hacker News

Freight Startups Attract Silicon Valley’s Attention

wsj.com

31–40 of 54 posts

Re: Freight Startups Attract Silicon Valley’s Attention

#31

I'm involved extensively in logistics, and although I'm not Flexport's target customer nor involved in their specific space of logistics, I can easily say that they are the most exciting new thing in logistics since the container. The thing is, they aren't doing anything revolutionary. They are doing the same exact things that a lot of companies have done for decades. What makes them revolutionary is 1) They are doin…

[deleted]

Re: Freight Startups Attract Silicon Valley’s Attention

#32

Earlier quoted context omitted.

I think the trick will be to create a digital version of a part of the system that already exists and then gradually simplify down to something more sane. Otherwise it'd be really easy to drown in the almost endless complexity (a lot of which doesn't need to be there but accumulated).

From what I understand a lot of the problem isn't tech dependent but rather legal, standards, union etc related.

Absolutely, which is why if I was doing it I'd focus on a small part of the industry until I had some traction then simplify that part before moving in to the next.

If you try to eat the whole pie you'll choke.

Re: Freight Startups Attract Silicon Valley’s Attention

#33

Earlier quoted context omitted.

Regulations are the hard part about freight. Each state has different rules on things, it's really crazy.

That was true in the container revolution also. Malcom McLean (inventor of modern shipping containers) had to sell his trucking business when he bought a shipping business because because the regulator at the time did not allow anyone to operate a trucking company and a shipping company at the same time. There were also rules in the US at various times which prevented people from operating a trucking/railroad company…

Not to mention that the federal government then decided to standardize the size of shipping containers, and picked an arbitrary size that was different that the sizes used by the only two companies that had any container ships. When they offered huge subsidies to ship builders who adopted their new arbitrary 40' and 20' standards, it made the companies that pioneered the technology almost instantly non-competitive.

Re: Freight Startups Attract Silicon Valley’s Attention

#35
post #5

Flexport is hiring engineers: https://jobs.lever.co/flexport As an engineer starting at Flexport in a couple of weeks, here are some more interesting resources that shaped my thinking: Interview with Ryan Petersen (Flexport CEO) https://theblueprint.com/stories/ryan-petersen/ Office hours at startup school 2013 with pg & sama https://youtu.be/syoqjYLDs48?t=1167 I also happened to have recently read Zero to One. Plus,…

How do you differentiate yourselves from FreightOS?

[deleted]

Re: Freight Startups Attract Silicon Valley’s Attention

#36

From this thread https://news.ycombinator.com/item?id=9799007 I learned how hard it is to do anything in this field. None the less, if someone find a way to solve it, it's truly going to be transformative.

I think the trick will be to create a digital version of a part of the system that already exists and then gradually simplify down to something more sane. Otherwise it'd be really easy to drown in the almost endless complexity (a lot of which doesn't need to be there but accumulated).

Yep, that's what we did, starting with the process of clearing goods through Customs, and then expanding aggressively into air freight, ocean freight, and trucking over the last 12 months.

Re: Freight Startups Attract Silicon Valley’s Attention

#37
I spent a decade working with and writing software for LTL freight and 3PL companies on the receivables automation side and all I have to say is I hope these companies are successful.

There are tons of opportunities for efficiency gains all over these companies as they are some of the most low-tech back office operations I've seen. There's a definite gap between the biggest companies and the rest. These companies are notoriously conservative on all facets of their business, and they are a very tight knit industry. They all know what each other are up to, and they're leery of being the first mover on a technology.

This is one of many "old school" industries that are going to see some of the biggest innovation in the coming years. That will only be accelerated if we see fuel prices start to inch up again.

Re: Freight Startups Attract Silicon Valley’s Attention

#38
post #20

An oddly written story. Claims significant money invested in these companies ("$1 billion since the start of 2014") and proceeds to name only two -- Flexport and Freightos. The latter of which doesn't seem to fit the central disruption-of-established-industry theme because they sell software to the incumbents.

Yeah that confused me too. The $1B must be referring to the money raised by XPO.com from private equity backers to roll up a bunch of old school freight forwarding businesses. There's no tech involved in that play though, so it's a bit misleading to call it venture capital. In fact it was mostly done as a private investment in public equities (PIPE) deal, where PE funds put cash into a listed freight forwarder.

Re: Freight Startups Attract Silicon Valley’s Attention

#39
post #25

My dad ran a freight forwarding business for 25 years. They still use paper and fax. Half the office space is dedicated to cabinets of storage for paper files. Their main technology is an ancient IBM mainframe. Flexport is really going to change things.

Last year a job applicant then employed by a competitor told me the reason he wanted to work at Flexport was that he was sick of using a typewriter at work. For real, not making that up.

Re: Freight Startups Attract Silicon Valley’s Attention

#40

Earlier quoted context omitted.

Regulations are the hard part about freight. Each state has different rules on things, it's really crazy.

That was true in the container revolution also. Malcom McLean (inventor of modern shipping containers) had to sell his trucking business when he bought a shipping business because because the regulator at the time did not allow anyone to operate a trucking company and a shipping company at the same time. There were also rules in the US at various times which prevented people from operating a trucking/railroad company…

I know that the history of shipping containers might not sound like the most exciting thing in the world, but The Box is a great book http://www.amazon.com/The-Box-Shipping-Container-Smaller/dp/...

Shipping rules used to be crazy

Post reply on HN