Freightos acquires WebCargoNet to consolidate market share
Online freight broker Freightos purchased a wider variety of routes and modes of transportation in its marketplace through the acquisition of Spanish startup WebCargoNet, which maintains a database of global air-freight rates. Chief executive Zvi Schreiber said he hopes that the acquisition will provide an edge for the online international freight marketplace in an increasingly competitive market.
With the bulk of the global airfreight business still being conducted via phone by human brokers, online services like Freightos are fighting for market share against large and established players. Many online brokers are still limited to smaller shippers looking for low-cost options.
Schreiber was tight-lipped about the terms of the deal, saying the offer was “part cash, part shares.” However, a source close to Tech Crunch said the deal was “in the seven-figure euro range.”
Freightos’ goals for the marketplace are similar to what priceline.com did to the consumer travel market. In fact, the company recently brought Robert Mylod on board from priceline.com as an investor and director. “Booking a flight has been electronic for 50 years,” Mylod said, “but the cargo on airplanes, trucks and ships is still booked manually. This cannot continue. Growing global trade, e-commerce B2B [business-to-business] sales and sprawling dynamic supply chains demand the transparency and efficiency of online freight.”
The company’s platform allows customers to search for and compare all-in pricing for air, ocean and trucking freight quotes across multiple providers. Automated pricing cuts time for shippers, which previously had to wait, often for days, to receive quotes, Freightos said. After deciding on a quote, customers book it and enter their details, at which point the selected forwarders are put in touch with the customers.
What to see more about Freightos? Come see Phil von Mecklenburg-Blumenthal, head of U.S. operations for Freightos, speak about “Digital Shipping Startups” at Air Cargo World’s new conference on logistics innovation, called ELEVATE 2016, Oct. 10, in Miami. Click here for details.
