Visions - Winter/Spring 2018 - 8

VeriTread

MOBILITY AND AUTOMOTIVENEW

he need for enhanced efficiency is
challenging every industry across the globe
as technology enables competition to be faster, stronger
and smarter - and the construction industry is no different.
VeriTread is alleviating the headache of transporting heavy-haul
construction equipment so folks can focus on the important jobs
that bolster their bottom line. A great addition to SCOA's current
construction and logistics portfolio is an ownership stake in the
Florida-based online marketplace which was announced in August
of 2017.
VeriTread ("VT") provides an online transportation marketplace that connects
construction equipment owners with transportation service providers. VT
facilitates relationships by providing a suite of innovative decision tools to
make smarter, more effective arrangement of heavy-haul transportation. VT
already has partnerships with used equipment resellers such as IronPlanet,
Rock&Dirt, allEquip, Cat Auction Services, TruckPlanet, and GovPlanet. VT's
online system is integrated with these partners' websites, enabling equipment buyers to arrange transportation conveniently upon checkout.
The partnership was a positive step forward for both VT & SCOA. Jeff Cox
Jr., Founder and CEO of VeriTread shared his excitement in a statement, "We
are pleased to have SCOA partnering with us as we expand our platform and
grow our business. SCOA brings several years of expertise in this industry

Transfix

Based in New York, Transfix was launched in 2013 by Drew McElroy, an
individual that was literally born into the trucking industry - his parents even
named their freight brokerage company after him: Andrew's Express. Decades
later, McElroy has gained significant experience of his own in the trucking
logistics industry, and is currently backed by top VC firms in New York City and
San Francisco, including New Enterprise Associates and Canvas.
Transfix provides an online marketplace using innovative technology for the
trucking and logistics industry, providing a platform that matches shipments
with available trucks, including backhauls. The company also provides
technology to its users in the form of tools designed specifically to the user's
needs. Drivers get a mobile app (iOS & Android) that allows them to easily
visions

Winter | Spring

As a leader in infrastructure investments in the United States, SCOA recognizes the need for easy construction equipment transport, especially as
the deterioration of US roads, bridges and tunnels becomes a more serious
issue. Transporting large equipment is complex and expensive. Improving
the efficiency of this is important to equipment users, dealers, and rental
companies alike. Kenichi Hyuga, Senior Vice President and GM of the
Construction & Transportation Group at SCOA explains, "SCOA has been a
major player in the construction equipment distribution and rental business
in the US and Canada. With our experience in this industry, paired with our
long-standing partner relationships, we aim to further expand VT's value
throughout this market and continue to contribute to the development of US
infrastructure projects."
Investments such as VeriTread are part of SCOA's strategy to connect new
technology with our existing businesses. SCOA plans to pair our existing
portfolio of investments and our established business networks with new
companies and technologies that are setting the stage for the future of their
respective industries. By doing this, we intend to create new business as
that will be successful in an evolving marketplace.

NEW

umitomo's investment in Transfix, a leading
provider of on-demand trucking in the United
States, was one of the mobility-related investments
made in 2017. As a long-time player in logistics, SC Group saw
the value in Transfix's technology and knew that partnering with
this technology pioneer would be a beneficial move. The SC
Group is aiming to build a new business model in the field of
logistics, a typical strength of the Soga Shosha.

and many valuable relationships. We look forward to
having them as a partner
as we pursue our mission
to improve the heavy-haul
transportation industry."

2018

communicate load details and as well
as other features. Trucking companies get a FMS (Fleet Management
System) to manage their drivers and
streamline their business. Shippers get
a dashboard with real time shipment
locations, alerts, and customized analytics. Transfix has created a marketplace that provides considerable value
for drivers, carriers, and shippers, who are used to shipment arrangement
and management being time-consuming and troublesome.
Transfix has done a great job easing the issues within the industry. For
instance, the US truck market is expected to grow steadily by 1 to 2% every
year, but more than half of the market is outsourced and there are many
individual or small-sized truck carriers with limited resources to implement
IT functionality. The industry also suffers from a shortage of drivers. So, this
new business model is solving problems for both shippers and carriers.
Transfix has disrupted the market by using technology to empower their
customers, carriers and drivers. This new business model appears to have
significant potential, and SC Group expects this market to grow to approximately $12 billion by 2025.

Table of Contents for the Digital Edition of Visions - Winter/Spring 2018