Peloton Technology, the Mountain View company pushing a freight platooning system that blends automation and connectivity — closed a financing round this week that netted $60 million.
Fleet management software provider Omnitracs led the Series B round and was joined by investors such as Intel Capital, BP Ventures, Lockheed Martin, UPS Strategic Enterprise Fund, Sand Hill Angels, Schlumberger and more.
The diverse group represents industries such as advanced technologies, logistics, oilfield services and more. Some of the investors, such as Volvo Group via its Volvo Trucks North America unit, are actively working with the Silicon Valley company to integrate the technology into vehicles.
Since launching in 2011, Peloton has raised $78 million total.
The newest capital infusion will help the startup solidify its standing in the North American automated truck market “and soon beyond,” said Josh Switkes, Peloton’s chief executive.
Later this year, Peloton is planning to roll out a commercial 2-truck platooning system with driver assistance — the first program of its kind, the company said. Several Fortune 500 fleets will test out the system in 2017. Also, Omnitracs will incorporate the platooning system into its own telematics platform.
Peloton touts its technology as a way for trucks to save fuel through aerodynamics, avoid crashes and improve efficiency — claims supported by independent research from MIT and TNO. The platooning links pairs of trucks through their safety systems, then connects them to a cloud-based information hub that guides travel based on inputs such as traffic conditions, road features and weather.
Platooning is generating interest internationally. Last year, a convoy of more than a dozen trucks from the likes of Volvo, Scania and Daimler participated in a cross-Europe platooning exercise organized by the Dutch government. This year, the Singapore government began testing autonomous truck platooning with vehicles from Toyota and Scania.