Why We're Betting on the Future of Freight: Cartage's AI-Driven Revolution

North American manufacturers and distributors spend $1.3 trillion on freight every year— $200 billion is wasted on third-party vendors and internal labor just to coordinate shipments. Moreover, internal data remains fragmented, buried in emails and spread across disjointed platforms. It’s a system plagued by inefficiency, opacity, and inflated costs that can reach up to 50% above necessary spending that consumers end up paying for.

Enter Cartage, a company that’s not just disrupting the freight industry – they’re completely reimagining it. When we first encountered their team, what immediately caught our attention wasn’t just their innovative technology, but their profound understanding of the industry’s core challenges.

The magic of Cartage lies in its innovative approach to an age-old challenge. Rather than forcing the industry to adopt new technology, Cartage uses AI to manage logistics for its clients without changing how anyone works. Wilson, its AI logistics coordinator, serves as a shipper’s representative, coordinating freight on their behalf with trucking companies via email and phone call while storing data in a bespoke operating system. By handling the work of freight coordination, Cartage removes the need for third-party providers, an inhouse logistics team and software such as a TMS, streamlining operations, increasing service performance and saving shippers up to 30% on their annual freight budget.

What truly sets Cartage apart is their pragmatic approach to innovation. While others push for solutions that uproots how the industry operates, Cartage recognizes that phone calls and emails aren’t going anywhere. Instead of adding complexity, its AI works within these established channels, proving that significant improvements can be made seamlessly.

The results speak for themselves. Since launching in early August 2024, Cartage is already on pace to coordinate more than $10 million in shipments for their customers this year, while cutting costs for shippers by up to 30%.

Behind this success stands a team with unparalleled expertise. CEO Abdul Basharat and CTO Josh Lampen bring deep technical knowledge from their time at freight-tech company Rose Rocket, while COO Harman Sahota contributes hands-on logistics experience, having previously founded Westcore Logistics, a freight brokerage that grew to handling $50 million in shipments annually.

The freight industry doesn’t need another software solution – it needs a revolution. Cartage is delivering exactly that, with a service that reduces costs, increases transparency, and maintains the human touch where it matters most. Their approach to automation isn’t about replacing people; it’s about empowering them to focus on what truly matters.

This is why we invested in Cartage. We’re not just backing a company; we’re investing in a future where freight coordination is simpler, more efficient, and more transparent for everyone involved. The road ahead is clear, and Cartage is in the driver’s seat.