The term “carpooling” may have once been reserved for commuting to school or soccer practice. but Entrepreneur from Atlanta Michael Malachow and Eric Morris are bringing a new definition of “carpooling” to the logistics industry with their startup Carpool Logistics.
Together, the two bring 25 years of logistics experience at giant CH Robinson. Now, ride-sharing logistics is building a network of drivers to support the transportation of cars across the country. Its technology platform and network of contract drivers help optimize automotive shipping to reduce time, costs and overall emissions associated with shipping vehicles.
“At CARPOOL we bundle cars. We have a shared economy business model that allows us to consolidate vehicles going to similar destinations,” Malakhov said.
The CARPOOL platform streamlines the end-to-end process Customers can get a quote, provide shipping information, make a payment, and track a vehicle shipment all in one place.
Customers include auction houses, dealers, or individuals who need to ship a vehicle. Offer provided is based on vehicle size, market size conditions, weather and other geographic restrictions.
It’s an interesting time to connect car shippers and hauliers, Malakhov told Hypopotamus. The automotive industry is experiencing a renaissance and one of the shifts is towards digitalization. Auto dealerships are expanding into e-commerce as consumers find it more convenient to buy cars online, auto auctions go digital, and even automakers are beginning to embrace the direct-to-consumer model.
The vehicle logistics sector has traditionally lagged behind the entire freight industry in terms of innovation. Today’s consumers are used to speed, communication, and the ability to track products delivered to their doorstep, yet shipping a $30,000 vehicle can take weeks with no visibility and poor communication.
It is estimated that the vehicle shipping industry reaches beyond that $13 billion this year As consumers become more convenient in buying cars online, it looks like the logistics spaces will make operations “greener” and consumers continue to struggle with the used car shortage.
Supply chain disruptions experienced by the automotive industry due to chip shortages have created a significant imbalance between supply and demand. The lack of new vehicle inventories has pushed up demand and prices for used cars, which Malakhov said has made it inexpensive to buy a car remotely in another state and have it shipped.
“Significant disruptions in the supply chain are driving innovation and there is a lot of interest to invest in logistics space now,” Malakhov added. “At CARPOOL, we bring speed, shipment optimization and tracking transparency that are absolutely necessary for the future of vehicle logistics.”
Atlanta’s Auto Tech Market
It’s no surprise that a car-dependent city like Atlanta has a slew of auto-focused entrepreneurs. In addition to startup founders and investors in the region, Georgia is home to companies such as Cox Automotive, Mercedes Benz USA, Porsche US and a number of manufacturing facilities.
It’s also attracting a growing number of companies focused on electric vehicles (EV), including Rivian’s planned plant in Commerce, Georgia. Rivian is there the growing trend of direct-to-consumer automotive ventures that are transforming the car buying experience.
For Malakhov, Atlanta’s logistics talent pool was also instrumental in getting Carpool Logistics off the ground.
With a Malakhov said CARPOOL is currently focused on expanding its technology, Malakhov said Platform and eventually fundraising in mid-2022.
Selected photo provided by Carpool Logistics