As Chicago cements itself as a logistics-tech hub, another startup has popped up to join the pack, and this one has ties to one of Chicago’s most notable logistics success stories.
Forager Logistics, a startup focused on cross-border freight into Mexico and Canada primarily for automotive and aerospace industries, was founded just in December by Matt Silver, a former employee of Coyote Logistics and the son of Jeff Silver, who founded Coyote in 2006.
Coyote Logistics, which coordinates freight movements, was acquired by UPS in 2015 for $1.8 billion. At Coyote, Silver spent more than a decade refining the company’s sales strategy in the U.S., Canada and Mexico, experience that has now helped define the mission of Forager.
“I grew up around this industry,” said Silver, who first began working at Coyote in 2007 as an intern. “I was trying to learn how the business worked.”
Through his time at Coyote, Silver worked in the company’s sales and operations, carrier relations and pricing strategy departments. But soon after Coyote was acquired, Silver decided it was time to try his own thing.
“I decided I wanted to try something new, and go out on my own and do something my way,” he said.
Forager has built a platform that makes it easier for shippers to transport their products by truck to and from Mexico and Canada. Unlike Coyote, Forager is focused on small to mid-sized companies that need high-tech logistics services.
“We focus on all the really complex components of supply chain,” Silver said. “Automotive is a big area of that because of how complex it is."
Forager is the latest in a growing group of logistics tech companies in Chicago that are growing and raising venture capital. FourKites, a local logistics company that helps companies predict when shipments will arrive at scheduled stops, just raised $50 million earlier this month.
Additionally, Project44 raised $80 million over two rounds last year and ShipBob raised $40 million in September.
But Silver says there’s room for Forager to compete because their service fills a different niche that focuses primarily on truckloads for international shipping needs.
“In terms of having the right relationships, the right service levels and the right experience, I don’t feel like we’ve run into anybody that is directly in competition [with us],” Silver said.
The startup hasn’t raised any venture capital, but Silver said it is “heavily backed by people in the industry that are in a variety of areas that believe in our vision and our plan.”
Since launching, Forager has been hiring consistently and currently has about 16 employees.
“We’ve been really focused on the culture and making this a business people want to be a part of,” Silver said. “So, we were able to attract some talent pretty quickly.”
