Listen to this articleBelow is our recent interview with Michael Leto, CEO of Emerge:
Q: For those who haven’t heard of it, what is the best way to describe Emerge?
A: Emerge is a Digital Freight Marketplace giving shippers the ability to digitize their supply chain for domestic trucking.
Specifically, our platform provides access to direct capacity and strategies to ensure that shippers are making the strongest, most beneficial decisions for their freight operations.
Q: What is the story behind Emerge? How Did It Start?
A: My brother Andrew Leto and I grew up in the freight industry spending summers helping our father, Vito, run an air freight business. Little by little we were able to soak up the knowledge that would later help us create one of the biggest freight brokerages in the country.
As we became adults, I took over more responsibilities in the family business while Andrew enlisted in the U.S. Navy.
Upon his return home, Andrew recognized an opportunity to monetize on technology and we set out to build GlobalTranz – a software-driven third-party logistics company created to help shippers better manage their freight.
While the first inning of GlobalTranz was funded by Andrew’s unemployment check and operated out of a single bedroom apartment, success came quickly. It wasn’t long before we moved into a large facility and brought on hundreds of new employees each year. The company rose to national recognition over the following several years, allowing us to successfully exit in 2016 with revenues in excess of $1B. During that time, we also started building 10-4 Systems – a second venture that specialized in freight tracking, which we sold in 2018.
Following the sale of our two companies, Andrew discovered another opportunity for technology to change the freight game. He set out to create the first Digital Freight Marketplace connecting shippers to direct carrier rates, reducing operational costs and helping to improve service on everything from quote to delivery. I was brought in to run and grow the internal operations as CEO and Emerge was born.
Recommended: Q: Why does every shipper need a digital freight marketplace?
A: The simple answer is shippers are unnecessarily spending too much to move their freight. And, they probably don’t even realize it.
On average shippers only work with and/or get shipping rates from approximately 20 trucking companies or brokers. While larger U.S. shippers may contract with around 400 carriers, both of these groups of shippers are only connecting with a small fraction of available vendors. With 380,000 trucking companies to potentially source shipping rates from, shippers inadvertently hinder perfect competition by keeping their carrier networks so small. The Emerge Digital Freight Marketplace gathers the best rate available and lets the shipper compare it alongside their current network, ensuring they can access the best rate every time.
Q: What are the benefits of using your product?
A: Streamlined communications and reduction in freight spend. We replace archaic procurement tools and spreadsheets with advanced tools and analytics to enhance the shippers’ capabilities when procuring trucks.
Q: What are your product’s capabilities?
A: Our platform includes a light Transportation Management System (TMS), a Dynamic RFP and a Spot platform.
Recommended: Q: What can we expect from Emerge in the future?
A: With $2M in top-line revenue generated in 2018, $30M in 2019 and projections of $100M for 2020, Emerge is not only on track to revolutionize the way shippers procure trucks, but we’ll also be one of the fastest growing companies in the country. With a heavy focus on the continual expansion of our platform’s capabilities, providing proven value to our users, and growing our amazing culture, we’re predicting big things for 2020 and beyond.
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