The business of moving goods in the united states is dominated by trucks, which handles about two-thirds of the 20.2 billion tons of freight That’s transported annual. Parallel systems Founder and CEO Matt Soule Wants to Change that by putting a modern autonomous and electric twist on the centuries-grilrod system.
The los angeles-based company is building battery-power Freighth Technology that works with existing freight cars and integrates with existing train contract software. Soule’s Pitch: Parallel’s System Makes It Less Expected For Companies to Use Rail-Not Trucks-For Short-DISTANCE DELIVERIES.
Rail has been traded, underuelized registered, trains to techcrunch. Businesses often Turn to Trucks for Moving Freight Shorter Distances.
Parallel Systems Developed A System that Allows Train Cars to Attach and Detach Autonomously. This means companies can use parallel’s tech for a variety of different delivery sizes and humans duans don’t to manually connect and disconnect the car – a dangerous process. Parallel’s tech also allows freight cars to brake significantly quicker than existing train, soule added.
“We’re using a different physical architecture to Accomplish Truck Competitive Economics at Small Scale Rather Than Big Scale,” Soule said. “The vegetable is compatible with existing Rail infrastructure. It is designed and being demonstrated to operate along Trains with this. “
Parallel recently was approved by the federal railway administration to start piloting the tech in georgia. This program will allow the company to test its tech-enabled trains a 160-mill stretch between the port of Savannah in Savannah, Georgia and Multiple Distribution Sits in the State.
Parallel also recently raised a $ 38 million series b Round co-also by anthos capital and collaborative fund with participation from congruent ventures and riot ventures, among other. This Brings Parallel’s Total Funding to more than $ 100 Million. The Fresh Capital will be put towed commercialization with the company hoping to host its initial commercial launch in 2026.
Sophie bakalar, a partner at collaborative fund, Told Techcrunch that While Parallel Doesn’t Doesn’t Neatly Fit Into Its Consumer-Leaning General Thehis, the FIM WAS INTRIGUED by the COMPANY AFTER Getting Introduced through an existing founder in his portfolio.
While Collaborative Fund does not invest in this area typical, shipping and the movement of goods does have a big impact on the consumer companies companies companies collab is unuiled back Good Opportunity-even if it is off-tois.
“I think this team is really uniquely-positioned to solve this problem,” Bakalar said. “Just not many follows are going to be almost to do it.
Soule does not have a background in railway, specially. However, he does have a history of working in regulated transportation. He spent 20 years in aerospace, 13 of which was at spacex.
“We we WERE Developing New Technologies,” Soule Said. “I worked in avionics, which is electronics and software that controls the Rockt and Got Incredibly Curious About How All these Technologies Bnefit OTHEFIT OTHEEFIT OTHEEFIT OTHEEFIS TYPES OF Seen as much innovation. “
He launched the company in 2020 and now, five years laater, parallel has built out the technology and is focused on commercialization.
While Getting Companies to Change Their Shipping and Distribution Strategies BE A Large Feat, Demand for different solutions is there, soule said. He added that that they have had interest from across the globe but plan to focus on the US and Australia for now.
This news also comes as the US hangs in tariff limboIf tariffs do end up going through, bakalar predicts it would stir up more demand for companies like paralle as companies will likely be lookingly be looking to cut costs in any way.
“This is like a generational innovation in terms of freight and you don’t see a lot of change in the freight industry,” Soule said. “But this is hitting on points that matter.”