ArcBest invests $25 million in Silicon Valley startup Phantom Auto
by January 19, 2022 7:57 am 1,605 views
Fort Smith-based shipping and logistics company ArcBest has invested $25 million in Phantom Auto, a Silicon Valley-based provider of remote vehicle operation software.
According to an ArcBest news release Wednesday (Jan. 19), ArcBest is the lead investor of Phantom Auto’s Series B Preferred offering. As part of the agreement, Michael Newcity, ArcBest Chief Innovation Officer and president of the company’s ArcBest Technologies subsidiary, will join the Phantom Auto board of directors.
“As ArcBest continues on its rapid growth trajectory, we are focused on optimizing our performance through technological innovation,” Judy McReynolds, chairman, president and CEO of ArcBest, said in the release. “Phantom Auto strategically aligns with our long-term goals, complementing ArcBest’s existing innovation pipeline, technology roadmap and partnerships, and building on the important work already underway to support our customers’ success. This investment reflects our vision of great people leveraging smart technology to strengthen performance and relationships to benefit all of our stakeholders, including our shareholders.”
According to ArcBest, approximately 4% of its annual revenue is spent on technology and innovation, with nearly half of the budget dedicated exclusively to growth and transformative initiatives like those developed at Phantom Auto.
All types of vehicles can be remotely controlled by Phantom Auto. Using Phantom’s technology, off-site drivers can remotely monitor, assist, and drive vehicle fleets from up to thousands of miles away, including forklifts, robots, and trucks. The company’s proprietary software provides secure, low-latency communication over volatile wireless networks for reliable sensor streaming and safe vehicle control.
“ArcBest has a rich history of delivering leading-edge technology that makes it easier for customers to do business — it is central to our ongoing strategy. We continuously analyze emerging technologies and collaborate with partners to develop modern logistics solutions,” Newcity said in a statement. “Phantom Auto is solving fundamental challenges facing the supply chain industry, and this investment aligns perfectly with our commitment to advancing a culture of innovation and enabling a more efficient and sustainable supply chain.”