OnTruck: Transforming Europe’s Trucking Sector
OnTruck aims to revolutionize Europe’s trucking industry, a market valued at €600 billion. Established in 2016, this Madrid and Barcelona-based startup is developing a top tech platform and carrier network for on-demand B2B trucking services. OnTruck simplifies and clarifies the trucking process, putting control back into the hands of shippers and carriers. The company has seen rapid growth, employing over 140 individuals and securing approximately €36 million in venture capital. We spoke with OnTruck’s founder and CEO, Iñigo Juantegui, to gain insights into the company’s journey and vision for the future.
The Motivation Behind OnTruck
OnTruck was founded to address the inefficiencies prevalent in the road transportation sector. A conversation with a colleague in the industry highlighted how both companies and transporters face numerous challenges—such as drivers operating vehicles empty 40% of the time or taking inefficient routes. Recognizing the potential for technology to mitigate these issues, we consulted industry professionals to better understand their needs, resulting in the creation of a digital platform that connects businesses with professional hauliers.
Innovative Technology and Solutions
OnTruck employs an advanced algorithm that optimizes routes and can decrease empty travel kilometers by 20-25%. The platform offers hauliers a user-friendly, free application that helps maximize vehicle capacity, reducing empty trips while providing shippers with quick and transparent pricing, thus saving them time. This leads to notable efficiency gains by minimizing manual tasks, human errors, and idle time, alongside bettering driving efficiency with GPS-based routing. The overall impact benefits both carriers and shippers, easing the strain on transportation infrastructure and lessening environmental consequences.
Expanding into the UK Market
Recently, OnTruck expanded its operations to the UK, marking its first international foray outside Spain. Launching in a new market presents various challenges, including assembling a skilled team, building trust among local shippers and carriers, and adapting to local market dynamics. However, we discovered that the solutions we provided in Spain were also relevant in the UK, allowing us to successfully address the crucial product/market fit barrier.
Supporting Smaller Hauliers and Drivers
OnTruck empowers owner-operators and small to medium-sized fleets by offering a platform that helps them earn more, optimize vehicle usage, and receive faster payments, enabling them to operate similarly to larger fleets. In the UK, 90% of our drivers consist of individual owner-operators or small fleet owners, representing businesses with fewer than 20 vehicles. Our technology enhances service transparency and enables better pricing for these small businesses, contrasting with the previously convoluted subcontracting layers in the industry. Through the free OnTruck App, drivers are notified of available jobs and have the freedom to accept or reject them according to their preferences.
Advice on Raising Venture Capital
Raising funds is a continual challenge even for established companies, but for those just starting, I advise having a solid idea, a completed product, and a strong team—this covers 80% of the essentials. Next, set realistic short-term goals and prioritize customer feedback to uphold quality and enhance the service or product offering. Proving the capability to manage effectively increases the likelihood of attracting venture capital attention and respect.
Measuring Success and Future Vision
We define success primarily by the number of shipments executed on our platform, as this reflects our value delivery to clients and our ability to engage carriers. Achieving sufficient liquidity in our marketplace is critical for sustaining a competitive edge. The upcoming 3-4 years will see OnTruck aiming to become the go-to platform for road transportation, making waves in the regional road freight sector across Europe while setting sights even further ahead.
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