When software engineers Syed Aman and Sharan Grewal worked together at Walmart Labs in Sunnyvale, from about 2010 to 2018, they set out to build and scale Walmart’s grocery operations.
Through a mutual friend, they met Zahed Khan, who had more than 30 years of experience building produce businesses. He also owned a commercial trucking company.
The trio discussed technology and supply chain issues. And they saw an alignment in their beliefs that the supply chain for fresh produce was, as Aman recalled, “extremely old-fashioned, archaic and offline.
What they realized, based on their own experience, was that fresh produce spends half of its life on trucks. Because of that, Aman said nearly $15 billion of produce gets wasted each year because of transportation delays and other supply chain issues.
So, in 2018, Aman and his partners founded the startup Hwy Haul. The Santa Clara-based company is an AI-powered digital freight platform that connects fresh produce shippers with truckers, on-demand. Aman, Hwy Haul's CEO, said the company's goals are to eliminate supply chain issues and deliver sustainable produce.
The company — which has about 100 employee spread out in North America, Europe and Asia with about 12 to 15 people in Santa Clara — uses artificial intelligence specifically for dynamic pricing, so it can create flexible prices for its service based on current market demands, Aman said.
So far, the company has raised about $23 million, mostly recently with a $10.5 million Series A in 2021 as well as $10 million through a bridge round to a future Series B.
"The food and fresh produce supply chain is a vital network affecting multiple industries, and it faces immense challenges today," Kishore Bopardikar, founder and managing partner at lead investor Eileses Capital, said in a press release. "We are excited to lead this investment round for Hwy Haul as they digitize the overall supply chain experience, making it more accessible and affordable for all parties."
Dealing with Pain Points
What Hwy Haul hopes to do is alleviate a number of pain points, Aman said. Inflation is one. Repercussions of the war in Ukraine is another since the conflict has caused a global wheat shortage. And the Covid-19 pandemic and resulting lockdowns are still a factor, since they forced producers to divert their supply chain from restaurants to grocery stores. Many are still navigating how to most efficiently do this, Aman said.
Hwy Haul differentiates itself from existing competition by focusing on fresh produce and other perishable food. That includes controlling temperature conditions and humidity levels to help keep food fresh in transit. Competitors include Seattle-based Convoy Inc., a digital freight network, and Uber Freight in San Francisco, which provides logistics services for shippers and carriers.
For Aman, he sees a competitive edge for Hwy Haul because of the founders’ backgrounds.
“Our founding team is well-established in the industry and has built and led online grocery experience for large corporations including Walmart,” he said.
In his own case, Aman said that while at Walmart Labs, he helped launch grocery online pickup and delivery across the country.
The company plans to use the recent funds to establish direct relationships with enterprise accounts, including large food and produce shippers, growers, distributors, wholesalers and retailers in North America. Aman declined to disclose the names of any of the company’s customers.
As published, this story incorrectly reported the amount of funding that Hwy Haul had raised. As of mid-December 2022, the startup has raised $23 million. The story has been corrected.
