XStream Trucking, a design and engineering company focused on connected hardware for the commercial vehicle industry, today announced that it has secured $10.5 million in Series A funding co-led by Autotech Ventures and Calibrate Ventures, along with participation from the existing shareholders of Uncork Capital, Root Ventures, FusionX and Tandem Capital.. The proceeds of the round will be used to accelerate the company’s ability to deliver better fuel economy to the $700 billion U.S. trucking industry through innovative hardware and software solutions.
XStream Trucking’s flagship technology, TruckWings, is an active-aero device that automatically closes the tractor-trailer gap on commercial trucks when the vehicle is at a certain speed and creates an estimated fuel savings of between 4-6%. The company also offers GPS-enabled software that tracks fuel savings information in real-time.
“Fuel is often the largest cost for commercial trucking fleets and our products can help large fleets save millions each year,” said Daniel Burrows, CEO of XStream Trucking. “XStream Trucking’s proprietary technology and state of the art processes addresses a previously neglected area of truck aerodynamics, and we are thrilled to have the support of Autotech Ventures and Calibrate Ventures. Their partnership will allow us to expand our capabilities to deliver further cost-saving technology and software-based insights to America’s trucking companies.”
According to the American Trucking Association, the industry spent more than $105 billion on diesel fuel in 2015, and it can account for as much as 20% of total operating costs[1]. With more than two million tractor-trailers operating in the U.S., TruckWings’ technology has the potential to significantly decrease the amount of fuel used each year, and could save the commercial trucking industry between $4-6 billion each year.
“The trucking industry is the backbone of American commerce, so technologies that can enhance fuel economy and performance are poised to make a significant impact throughout the value chain,” said Jason Schottler, Co-Founder Calibrate Ventures. “We expect TruckWings is just the first of many groundbreaking innovations XStream Trucking has in store to tackle the global logistics industry’s greatest challenges.”
Since launching the first road units in October, 2016 XStream Trucking has seen tremendous adoption with fleets covering more than 1 million miles per week. With current fuel prices at an average of $3.14 per gallon[2], and with a median heavy-duty fleet fuel economy of 7.5 miles per gallon[3], a truck driving an average of 120,000 miles per year has a potential annual fuel savings of more than $2,000[4] when factoring in a conservative 4% efficiency increase. TruckWings technology has been tested in the wind tunnel, on the track and in real-world over-the-road conditions. The greatest fuel savings has been proven in over-the-road tests where real-world cross-winds are taken into account, producing fuel savings beyond 5% on average.
“We’re extremely excited about our partnership with XStream Trucking and what this investment means for the commercial trucking industry as a whole. TruckWings is a revolutionary product, but the entire XStream Trucking organization represents a dedicated approach to helping fleets solve everyday challenges that save money, pay back quickly, enhance sustainability and optimize a sector that is essential to American commerce,” said Maurice Gunderson, Managing Director, Autotech Ventures. “We look forward to partnering with XStream Trucking to continue pioneering innovative offerings that leave an indelible mark on the global logistics industry.”
