Traxen: Why We Invested

By Elizabeth Coston McCluskey and Tasha Seitz

More than 70% of goods shipped in the US are transported via truck, representing 11.84 billion tons. Long haul trucking is a massive source of fuel consumption: the International Council on Clean Transportation estimates that tractor trucks represent 71% of all fuel consumed by heavy-duty vehicles. Fuel also represents a significant portion of the operating cost for trucking and logistics, at 24%, second only to labor costs. As engines and aerodynamics have become more fuel efficient over time, driver behavior has become a more significant factor determining fuel consumption. A study conducted by the American Trucking Associations’ (ATA) Technology and Maintenance Council found a 35% difference between most efficient and least efficient drivers based on speed, acceleration, braking and route selection. 

Solution

Traxen provides a cloud-connected intelligent cruise control system that assists drivers to reduce fuel consumption during highway driving while improving safety & drivability. Using sensors that can be retrofitted onto existing trucks combined with data on weather conditions, high definition maps, estimates of internal loads, and projected traffic, Traxen can manage a truck’s speed from end to end to optimize for safety and fuel efficiency. 

Why We Invested

The founding team and board at Traxen is steeped in the industry and the problem they are addressing, with backgrounds in autonomous driving, electrification and connected vehicles. The team’s vision is to enable a pathway for trucking and logistics companies to realize the benefits of autonomous vehicles as technology and policy evolves. While it is early, there are strong indications regarding the effectiveness of the technology: a third party study verified by the North American Council for Freight Efficiency (NACFE) showed an average 7% improvement in fuel efficiency in a side-by-side comparison for trucks carrying identical loads along a typical long haul route. 

Impact

There is potential for compelling environmental impact given that long haul trucking is such a significant means of freight transportation and consumer of fossil fuels, and long haul is likely to be the last segment in trucking to adopt electric vehicles given challenges related to charging infrastructure and range. A conservative, “back of the envelope” analysis suggests that a 5% improvement in fuel efficiency would translate to reducing greenhouse gas emissions by 25 million metric tons/year in the US, or the equivalent of taking more than 5 million cars off the road.