Peloton Technology closes $16M strategic funding round to achieve new levels of truck safety and efficiency
Peloton Technology, a developer of vehicle systems that deliver advanced safety, fuel savings and analytics to trucking fleets, announced the closing of a $16 million oversubscribed Series A investment round led byDENSO International America and Intel Capital. Financing from venture capital funds and industry investors including Magna International, Castrol innoVentures, Volvo Group Venture Capital and UPS Strategic Enterprise Fund will accelerate Peloton’s development and deployment of truck platooning technology for the U.S. and international trucking industries.
“Peloton’s truck safety and platooning technology has the potential to dramatically improve highway safety and operational efficiency for trucking fleets,” says Rodney Slater, Peloton board member and former U.S. Secretary of Transportation. “These truck safety and automation technologies are a key part of the systems that the U.S. needs to address the dramatic growth in freight and traffic in the years ahead.”
The Peloton Truck Platooning System is a vehicle automation technology that has the potential to save lives and save fuel in today’s trucking operations. The System electronically couples pairs of trucks through a combination of vehicle-to-vehicle communications, radar-based active braking systems and proprietary vehicle-control algorithms. The direct communication link between the two trucks enables the rear truck to automatically react to acceleration or braking by the front truck nearly instantaneously. This automatic and immediate reaction improves safety and allows trucks to travel at closer distances, which also improves aerodynamics and reduces fuel use on both vehicles. Peloton’s Cloud-based Network Operations Center continuously monitors individual truck safety and approves the linking of pairs of trucks only on suitable roads under appropriate weather, vehicle and traffic conditions. Drivers retain steering control and command of their vehicles at all times. The Peloton System integrates best-in-class active safety systems with cloud-based monitoring, making individual trucks safer at all times and delivering a rapid ROI to fleets via fuel efficiency.
In 2013, Peloton began demonstrating its Truck Platooning System with fleets and other transportation stakeholders in the U.S., where the trucking industry is worth $682 billion annually. The system is proven to reduce fuel consumption by 10 percent for the rear truck and 4.5 percet for the front truck, based on industry-standard SAE J1321 Type II fuel economy testing conducted by the North American Council for Freight Efficiency and trucking fleet C.R. England.
The Series A round was co-led by DENSO, an automotive supplier of advanced technology, and Intel Capital, the global investment arm of computing technology leader Intel.
“DENSO is excited to build a strong relationship with Peloton," says Tony Cannestra, director of corporate ventures for DENSO International America. "As a leader in Vehicle to Vehicle (V2V) communications, we are eager to work closely with Peloton to implement the first large-scale deployment of V2V technology. DENSO believes the Peloton's system has the potential to help increase safety and fuel savings in the transportation industry.”
Intel offers Peloton insight into solutions involving high-speed processing, wireless security and the cloud. “As a leader in the Internet of Things, Intel is excited to support a company on its way to introducing a truly transformative application of connected vehicle technology,” says Elliot Garbus, vice president and general manager of Intel’s Transportation Solutions Division. Intel Capital's investment was led by Managing Director Mark Lydon and was part of its $100 million Connected Car Fund.
Peloton is developing a Platooning Network Operations Center (NOC), a cloud-based service that communicates with the trucks to approve and adjust platooning parameters based on location, road, and weather conditions. It also helps trucks find platooning partners and collects unprecedented data about the vehicle, the driver and the operating environment. Peloton is developing data products to improve safety and efficiency of drivers, vehicles and fleet routing and logistics. The System's safety and analytics features are always active whether or not a truck is platooning or on its own.
“This combination of connected vehicles, advanced safety and analytics can revolutionize freight transport,” says Ralph Eschenbach, Peloton board member and former chief technology officer of Trimble Navigation. “It’s remarkable to recognize how far location-based services have come since I started working on early GPS applications in 1976.”
The Series A round also included seed round investors Sand Hill Angels, the Band of Angels, Birchmere Ventures and the UPS Strategic Enterprise Fund. These non-controlling investments, notably including support from five Fortune 500 leaders in technology and transportation, will accelerate Peloton’s plans to offer systems across all OEM truck platforms without constraints.
“As one of the largest global automotive suppliers and a leader in camera technology and driver assistance systems, we are proud to partner with the Peloton team to assist them in advancing safety and efficiency in the trucking industry,” said Swamy Kotagiri, chief technology officer, Magna International.
“We are excited to be working with this strategic group of investors," said Peloton CEO Josh Switkes. "Together, we make an outstanding team that combines world-class vehicle engineering, Silicon Valley expertise in the cloud and connectivity, and the support of global business leaders in transportation and technology.”
