Oway’s Vision
San Francisco-based startup Oway has raised $4 million in seed funding to redefine freight transportation. Backed by Y Combinator and General Catalyst, Oway aims to create a decentralized platform that operates as an ‘Uber for freight,’ focusing on optimizing long-haul trucking routes. By leveraging artificial intelligence (AI) and electronic logging devices (ELDs), Oway is tackling the $100 billion problem of underutilized truck space in the U.S., offering a cost-effective and eco-friendly solution for businesses and carriers alike.
The Problem: Inefficiency in Freight Transportation
A Multi-Billion Dollar Opportunity
The U.S. trucking industry, valued at over $1 trillion, faces a significant challenge: nearly 50% of truck space goes unused annually. This inefficiency drives up shipping costs, increases consumer prices, and contributes to higher carbon emissions. Traditional freight models, such as full truckload (FTL) and less-than-truckload (LTL) shipping, often fail to address this issue effectively. FTL shipments, while faster, are expensive, requiring shippers to reserve entire trailers. LTL shipping, though more affordable, involves multiple transfers, leading to delays and potential damage to goods.
The Impact on Businesses and the Environment
High shipping costs and inefficiencies place a burden on businesses, particularly small and medium-sized enterprises (SMEs) that struggle to afford reliable logistics. Additionally, empty truck space contributes to unnecessary fuel consumption, exacerbating environmental concerns. Oway’s mission is to address these pain points by creating a platform that maximizes truck capacity, reduces costs, and minimizes environmental impact.
Oway’s Innovative Solution
AI-Powered Freight Matching
Oway’s platform uses advanced machine learning algorithms to match cargo with available trailer space in real-time. By analyzing data from ELDs—government-mandated devices that track truck locations and driver hours—Oway identifies trucks with unused space along routes that align with a shipper’s needs. This allows businesses to ship smaller loads, even as little as a single pallet, at significantly reduced rates—up to 50% off market prices.
Streamlined Operations with Technology
Beyond AI, Oway automates critical aspects of the shipping process, including documentation and insurance. This reduces administrative overhead for both shippers and carriers, ensuring a seamless experience. The platform supports rapid pickups, often within an hour, and provides direct, door-to-door delivery without the need for warehouse transfers. This hybrid approach combines the speed of FTL with the affordability of LTL, delivering unmatched efficiency.
Decentralized Model for Scalability
Unlike traditional freight brokers that control entire trailers, Oway operates a decentralized model, collaborating with carriers, brokers, and shippers. This flexibility allows the platform to scale rapidly and integrate with existing logistics ecosystems. Oway’s vision is to create infrastructure that other businesses can build upon, fostering innovation in the logistics sector.
The Funding Milestone
$4 Million Seed Round
Announced on August 22, 2025, Oway’s $4 million seed round was led by Y Combinator and General Catalyst, two of the most prominent names in venture capital. The funding reflects strong investor confidence in Oway’s ability to disrupt the freight industry. Founded in 2023 by Phillip Nadjafov, the 12-person startup is poised to expand its operations across the U.S., with plans to eventually explore international markets.
Strategic Support from Investors
Y Combinator’s backing provides Oway with access to a vast network of mentors, resources, and industry connections, while General Catalyst’s expertise in scaling tech-driven startups will help Oway refine its platform and reach new customers. The funding will be used to enhance AI capabilities, expand carrier partnerships, and roll out services in additional states, including California, Texas, Arizona, Florida, Nevada, Washington, and Oregon.
Oway’s Impact on the Freight Industry
Cost Savings for Businesses
Oway’s platform has already demonstrated its potential to transform logistics. For example, the cost of shipping a sub-2,000-pound pallet from Los Angeles to Dallas has dropped from $220 to as low as $60. This dramatic reduction makes freight shipping accessible to businesses of all sizes, enabling SMEs to compete with larger enterprises. Additionally, Oway offers transparent pricing with no back-charges and includes accessorial services like lift gates at no extra cost.
Faster, Safer Deliveries
By utilizing FTL carriers for most shipments, Oway ensures faster deliveries with fewer transfers, reducing the risk of damage. The platform’s AI-driven routing optimizes detours, ensuring carriers can pick up and deliver cargo without disrupting their schedules. Comprehensive insurance and real-time tracking further enhance reliability, giving businesses peace of mind.
Environmental Benefits
Oway’s focus on filling empty truck space directly contributes to reducing carbon emissions. By maximizing trailer capacity, the platform minimizes the number of trips required, cutting fuel consumption and supporting sustainability goals. On average, Oway’s shipments achieve a 30% reduction in carbon footprint compared to traditional methods.
How Oway Works
Seamless User Experience
Businesses can get started with Oway by creating a free account and entering two zip codes to receive an instant quote. Once an order is placed, Oway’s AI matches the shipment with a nearby carrier, dispatching them within an hour during business hours. The platform supports a wide range of shipment sizes, from single boxes over 100 pounds to larger pallets, making it versatile for various industries.
Carrier Benefits
For carriers, Oway provides an opportunity to monetize unused trailer space, increasing earnings without significant detours. The platform’s transparency and lack of back-charges foster trust, while automated documentation streamlines operations. Carriers also benefit from Oway’s enterprise solutions, including TMS integration and forecasting for high-volume shippers.
The Future of Oway
Scaling Across the U.S.
Currently operating in seven states, Oway plans to expand its footprint nationwide, leveraging its decentralized model to onboard more carriers and shippers. The company’s small but agile team is focused on refining its technology and building partnerships with major fleets, some of which have thousands of vehicles.
A Vision for Global Impact
While Oway is prioritizing the U.S. market due to its reliance on trucking, international interest is already emerging. The platform’s scalable infrastructure and AI-driven approach position it to address similar inefficiencies in global logistics markets. Over the next decade, Oway aims to become the standard for freight shipping, transforming how goods move worldwide.
Challenges and Opportunities
Navigating a Competitive Landscape
Oway faces competition from established players like Uber Freight and Flock Freight, which also aim to optimize logistics. However, Oway’s narrow focus on long-haul routes and decentralized model sets it apart, offering a unique value proposition. By collaborating with other brokers rather than competing directly, Oway can carve out a significant niche.
Regulatory and Industry Challenges
The use of ELDs, while critical to Oway’s model, has been controversial among drivers due to privacy concerns. Oway must balance leveraging ELD data with addressing driver concerns to maintain strong carrier relationships. Additionally, navigating complex freight regulations will be key to ensuring compliance and scalability.
Oway’s $4 million seed funding marks a pivotal moment for the freight industry. By harnessing AI, ELDs, and a decentralized approach, Oway is poised to solve the $100 billion problem of empty truck space, delivering cost savings, faster deliveries, and environmental benefits. With the backing of Y Combinator and General Catalyst, Oway is well-positioned to redefine logistics, making shipping more accessible, efficient, and sustainable for businesses and carriers alike.
