Startup funding in logistics

A new report looks at the impact of new money in an old industry—and what it means for incumbents, startups, and investors.

 
The transport and logistics sector has seen marked improvements in recent decades. As new technologies have entered the market, efficiency has increased and prices have decreased. Yet the industry continues to face significant challenges, including a high number of breakpoints, complex pricing rules, and a lack of data standardization.

 
While low profitability has made it difficult for the industry to address these issues, a new generation of logistics startups aims to solve them. In our new report, Startup funding in logistics: New money for an old industry?, we analyze more than 120 of the biggest logistics startups—representing an estimated 93 percent, or $26 billion, of total startup funding in logistics to date—and explore recent funding trends and their implications for incumbents, startups, and investors. The remainder of this article teases out lessons from one chapter of the report. For more information on more recent developments, see the sidebar “The impact of COVID-19 on logistics startups and venture-capital funding.”

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Πηγή: mckinsey