Trucking technology startup Convoy Inc. backed by Jeff Bezos and Bill Gates added one more prominent supporter through a new funding round that valued the startup as over $1 billion.
Convoy announced that it raised $185 million through Series C financing that was led by Alphabet Inc.’s CapitalG a growth equity fund. David Lawee a partner with CapitalG will sit on the board at Convoy. It is the second time over the last year that the parent company for Google has invested in a rival of Uber Technology.
Other investors making a first investment with Convoy included T. Rowe Price Group and Lone Pine Capital. Existing investors Y Combinator and Greylock Partners both participated. Convoy has taken in over $265 million thus far.
Convoy, which was founded three years ago, makes software that is able to match shippers to truckers in a way that is similar to Uber and rival Lyft connecting riders with drivers who are available.
The company said that its technology is able to help the shipper receive better pricing as well as track its deliveries, and allows smaller trucking companies to plan better.
Truckers are also able to save money when they are given a load to haul when returning from another instead of returning empty.
CapitalG said it has looked at Convoy for the last couple of years, attracted by the chance to make the trucking market more efficient.
The startup recently has shown it can improve the on-time rates for shipping companies and fill a bigger percentage of requests with that progressing persuading Capital G to invest.
Convoy is planning to expand with its new round of funding. It operates in each U.S. state, but must build its volume in certain regions that are new such as the Southeast.
Convoy will invest in its algorithms that help decide what shippers should be charged and how much drivers should be paid, as well as new software it offers trucking companies and drivers to make processes easier as well as using less paper.
Convoy has a long list of big-name supporters that includes CEO Marc Benioff from Salesforce, CEO Henry Kravis of KKR & Co. and Chairman Barry Diller of IAC/InterActiveCorp.
While one of its biggest rivals is Uber, the ride hailing company’s co-founder Garrett camp invested in Convoy at an early stage as did current CEO at Uber Dara Khosrowshahi.