INSUBCONTINENT EXCLUSIVE:
Trucks and other large commercial vehicles are the biggest whales on the road today — are they also, by virtue of that size, some of the
most dangerous and inefficient if they are driven badly
Today, a startup that has built a platform aimed at improving both of those areas has raised a large round of funding to continue fuelling
(so to speak) its own growth: SmartDrive, a San Diego-based provider of video-based telematics and transportation insights, has snapped up a
round of $90 million.The company is not disclosing its valuation but according to PitchBook, it was last valued (in 2017) at $290 million,
which would put the valuation now around $380 million
But given that the company has been growing well — it says that in the first half of this year, its contracted units were up 48%, while
sales were up by 44% — that figure may well be higher
(We are asking.)The funding comes at an interesting time for fleet management and the trucking industry
A lot of the big stories about automotive technology at the moment seem to be focused on autonomous vehicles for private usage, but that
leaves a large — and largely legacy — market in the form of fleet management and commercial vehicles.That’s not to say it’s been
completely ignored, however
Bigger companies like Uber, Telsa and Volvo, and startups like Nikola and more are all building smarter trucks, and just yesterday Samsara,
which makes an industrial IoT platform that works, in part, to provide fleet management to the trucking industry, raised $300 million on a
$6.3 billion valuation.The telematics market was estimated to be worth $25.5 billion in 2018 and is forecast to grow to some $98 billion by
2026.The round was led by TPG Sixth Street Partners, a division of investment giant TPG (which backs the likes of Spotify and many others),
which earlier this year was raising a $2 billion fund for growth-stage investments
Unnamed existing investors also participated
The company prior to this had raised $230 million, with other backers including Founders Fund, NewView Capital, Oak Investment Partners,
(NEA had also been an investor but has more recently sold its stake.)SmartDrive has been around since 2005 and focuses on a couple of key
Tapping data from the many sensors that you have today in commercial vehicles, it builds up a picture of how specific truckers are handling
their vehicles, from their control on tricky roads to what gears and speed they are using as they go up inclines, and how long they idle
The resulting data is used both to provide a better picture to fleet managers of that performance, and to highlight specific areas where the
trucker can improve his or her performance, and how.Analytics and data provided to customers include multi-camera 360-degree views, extended
recording and U-turn triggering, along with diagnostics on specific driver performance
The company claims that the information has led to more satisfaction among drivers and customers, with driver retention rates of 70% or
higher and improvements to 9 miles per gallon (mpg) on trips, versus industry averages of 20% driver retention and 6 mpg.“This is an
exciting time at SmartDrive and in the transportation sector overall as adoption of video-based telematics continues to accelerate,”
stated Steve Mitgang, SmartDrive CEO, in a statement
“Building on our pioneering video-based safety program, our vision of an open platform powering best-of-breed video, compliance and
telematics applications is garnering significant traction across a diverse range of fleets given the benefits of choice, flexibility and a
lower total cost of ownership
The investment from TPG Sixth Street Partners and our existing investors will fuel continued innovation in areas such as computer vision and
AI, while also enhancing sales and marketing initiatives and further international expansion.”The focus for SmartDrive seems to be on how
drivers are doing in specific circumstances: it doesn’t seem to suggest whether there could have been better routes, or if better fleet
management could have resulted in improved performance
(That could be one area where it grows, or fits into a bigger platform, however.)“SmartDrive is a market leader in the large and expanding
transportation safety and intelligence sector and we are pleased to be investing in a growing company led by such a talented team,” noted
Bo Stanley, partner and co-head of the Capital Solutions business at TPG Sixth Street Partners, in a statement
“SmartDrive’s proprietary data analytics platform and strong subscriber base put it in a great position to continue to capitalize on its
track record of innovation and the broader secular trend of higher demand for safer and smarter transportation.”
