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baton.io

Founded Year

2019

Stage

Series A | Alive

Total Raised

$13.68M

Last Raised

$10.5M | 1 yr ago

About Baton Trucking

Baton Trucking helps FTL carriers reduce inefficiencies in the last mile with a logistical platform. Carriers drop off and pick up their loads at Baton drop zones. Then Baton local drivers handle the final mile so long-haul drivers don’t waste hours in detention or traffic.

Baton Trucking Headquarter Location

351 King Street, Unit 111

San Francisco, California, 94158,

United States

815-289-4335

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Expert Collections containing Baton Trucking

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Baton Trucking is included in 1 Expert Collection, including Supply Chain & Logistics Tech.

S

Supply Chain & Logistics Tech

3,454 items

Companies offering technology-driven solutions that serve the supply chain & logistics space (e.g. shipping, inventory mgmt, last mile, trucking).

Latest Baton Trucking News

Funding secured, Baton Trucking takes aim at driver detention

Jan 29, 2020

FreightWaves Funding secured, Baton Trucking takes aim at driver detention Startup believes trailer drop yards will get truck drivers back on the road quicker and create efficiencies for fleets 0 1 5 minutes read Startup Baton Trucking believes it can eliminate waste and detention through a drop yard network where over-the-road fleets would stage trailers for delivery to their final destination by a local provider. (Photo: Brian Straight/FreightWaves) If weekly driver miles had remained the same since 2016, the average over-the-road truck driver in the U.S. would be making $1,247.44 per week today. Instead, miles per truck have declined for a number of reasons – electronic logging devices and detention to name just two – and despite the average pay per mile rising from 52 cents per mile in 2016 to 59 cents per mile in 2018, according to the American Transportation Research Institute, drivers are making less. Since January 2016, miles per truck per week, according to TCA Benchmarking Indices included in FreightWaves SONAR platform ( SONAR: MILTR.VCF ), have fallen from 2,114.3 miles on March 29, 2016, to 1,825.2 miles as of Dec. 31. With the pay per mile increase, the average over-the-road truck driver now takes home just $1,076.87, compared to $1,099.43 at the lower per-mile rate in 2016. Since January 2016, the miles per truck per week, according to TCA Benchmarking Indices included in FreightWaves SONAR platform, has fallen from 2,114.3 miles per week on March 29, 2016, to 1,825.2 miles per week as of Dec. 31, 2019. ( SONAR: MILTR.VCF ) Unless restrictions on drivinghours are eased or significant changes to driver detention are implemented,it’s tough to envision long-term change. But Andrew Berberick and Nate Robertthink there is a way to increase miles, and therefore pay, while improvingefficiency for fleets and lowering overall costs for shippers. Their idea may not be novel – theyadmit some larger fleets already deploy their solution – but the way they areapproaching it and the opportunity they are offering to fleets is, and that iswhere the efficiencies can be gained. “When a long-haul truck drives intoa metro area, once they get into the city and are sitting in city traffic …that final mile of delivery is the most painful [and expensive] for drivers,”Robert explained to FreightWaves. “The pain point is felt not only by carriersand drivers but also by shippers as well.” Data inside FreightWaves SONAR shows that the average over-the-road truck driver in the U.S. drives 7.59 hours per day (OHOS11.USA) while the average driver overall drives 6.41 hours per day (HOS11.USA). Conversely, local drivers drive for an average of 4.71 hours per day (LHOS11.USA), but they tend to make more stops. ( SONAR: HOS11.USA, OHOS11.USA, LHOS11.USA ) Berberick and Robert co-founded Baton Trucking . Baton just closed a $3.3 million seed round of funding and expects to launch its drop-zone solution in Ontario, California, and Dallas in March. The funding round was led by investment firm 8VC and includes commercial real estate giant Prologis and SVAngel as investors. (Both 8VC and Prologis are investors in FreightWaves as well). In explaining the need for such a solution, Berberick cited a Massachusetts Institute of Technology study that found trucks drivers only spend about 6.5 hours per day driving. Data inside FreightWaves SONAR shows that the average over-the-road truck driver in the U.S. drives 7.59 hours per day ( SONAR: OHOS11.USA ), while the average of all drivers is 6.41 hours per day ( SONAR: HOS11.USA ). Conversely, local drivers drive an average of 4.71 hours per day ( SONAR: LHOS11.USA ). Add in detention time, which SONAR data shows at an average of 156 minutes as of Dec. 31 and is even worse in Ontario at 166 minutes ( SONAR: WAIT.USA and WAIT.ONT ), and it is no wonder that over-the-road drivers hate those final miles. The FreightWaves Freight Intel Group said that detention costs the industry over $1 billion a year in foregone profits and over $17,000 per truck per year. The findings will be published in an upcoming white paper taking an extensive look at detention’s true costs to the industry. A FreightWaves SONAR chart shows the national detention time of 156 minutes as of Dec. 31, 2019,  compared to detention time of 166 minutes in the Ontario, California market, one of the markets that Baton Trucking is launching its service. ( SONAR: WAIT.USA and WAIT.ONT ) Baton is trying to change this byopening up drop yards just outside urban areas, allowing drivers to drop atrailer and quickly return to the road. Baton will handle delivery of thattrailer to its final destination. According to Baton, underutilized assets costfleets as much as $500 per day – a $350 million lost opportunity for a10,000-truck fleet. “What we’re building is economicaltoday and in the future in five or 10 years when autonomous trucks come out,this will be the model,” Robert said, noting that “we think it is adriver-efficiency problem and we’re helping that by taking out the hours thatare the worst part of the journey.” Berberick said that a truckingfleet could see several efficiencies, including more miles for its drivers andmore capacity to haul freight, by freeing up those hours spent waiting atfacilities. “The value for carriers here is theopportunity cost of not having that driver and asset sitting in the city,”Robert said. “It’s about getting that driver and asset back on the road so theycan make more profit.” It also could allow fleets tofine-tune specifications of their vehicles, Robert said. “The problem is that atruck has to be designed as a ‘jack-of-all-trades’ truck that not only has tooperate at 55 miles per hour on the highway but be able to handle tighter [citydriving],” he said. Berberick noted that in the future,it could enable the use of more-efficient electric vehicles for the local hauland long-haul trucks optimized for highway driving. “We’re into really gaining efficiencies. I think one of the reasons many of these efficiencies haven’t happened yet is you need everybody to collaborate.” Andrew Berberick, co-founder of Baton Trucking Once a trailer is dropped at ayard, the OTR driver can pick up another trailer – Baton can retrieve a loadedtrailer from a local location to further improve efficiency. Baton contractswith a local fleet that handles the final delivery. Because Baton wouldcontract with multiple OTR fleets in the area, the local fleet driver is ableto drop a trailer at the destination and move on to the next job, cuttingdetention time to nearly zero and ensuring that driver remains busy. Berberickalso said this model allows for more accuracy in hitting delivery appointments,including the ability to deliver during off-peak hours. “We’re into really gainingefficiencies,” Berberick said. “I think one of the reasons many of theseefficiencies haven’t happened yet is you need everybody to collaborate” –shippers, carriers, drivers and real estate partners. Baton’s founders estimate between a25% and 50% increase in asset utilization for fleets on delivery day throughuse of its services, and that translates into as much as 25% increase in milesdriven per week for drivers. Baton is a non-asset-based company,so working with the right partners is critical, Robert added. “We want to make sure the localdelivery network we work with is high caliber and highly vetted,” he said, andfor now, that means fleets with W2 drivers. Baton is currently in talks withfour of the nation’s top 20 fleets and several medium-sized fleets aboutparticipating in the early launch. “[The reaction] has beenoverwhelmingly positive,” Berberick said. “When you talk about California inparticular … it’s a difficult place to operate and the assumption is this isgreat because it allows fleets to get in and out of the area more effectively.” Use of a drop yard can be done byany fleet, but Baton’s founders believe the combination of their technology andthe ability to work with multiple fleets at a time will make their service morecost-effective than a fleet going it alone. Berberick explained that Baton isbuilding algorithms that will “allow us to optimize [the outcome] and allow thedriver to load in the most optimal way.” The result will be better economicsfor the carrier, better relationships with shippers who will deal with a localprovider that is able to optimize scheduling, and more money for drivers. “There’s a trove of data aboutlast-mile inefficiency that we can combine together to make better decisions,”Berberick said. Baton is also building anapplication programming interface (API) to make the entire process seamless forcustomers. All the drop zones will includeautomated entry to ensure security. Berberick said the hope is to eventuallypartner with a “valet” company that would stage trailers on the lotautonomously. Both Berberick and Robertparticipated in 8VC’s entrepreneurs in residence program and worked on a numberof possible logistics ideas before settling on the concept that would becomeBaton Trucking. “A lot of the sales process is arelationship,” Robert said. “We have seen tech people come into the freightindustry and think they can solve problems and that’s not how it works. … wesee this as [using tech and people]. If you were to ask, are we a logisticscompany or a technology company, the answer is yes.” Tags

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  • When was Baton Trucking founded?

    Baton Trucking was founded in 2019.

  • Where is Baton Trucking's headquarters?

    Baton Trucking's headquarters is located at 351 King Street, Unit 111, San Francisco.

  • What is Baton Trucking's latest funding round?

    Baton Trucking's latest funding round is Series A.

  • How much did Baton Trucking raise?

    Baton Trucking raised a total of $13.68M.

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