German self-driving electric trucking innovator Fernride today announced a $19 million raise in Series A funding, bringing the total round amount to $50 million.
Fernride provides scalable automation solutions for trucking operations using human-assisted technology, allowing remote control operations.
This provides a practical response to key industry challenges, such as the negative environmental impact of diesel logistics operations.
I spoke to Hendrik Kramer, co-founder and CEO of Fernride, before the announcement to find out more.
Yard trucks operate on special sites, moving goods from point A to point B, such as moving containers between two on-site halls 1 to 2 kilometers apart 100 times a day.
Automation not only eliminates the requirement for human drivers, but also enhances on-site safety. It improves vehicle efficiency by eliminating costly downtime while loading trucks, thanks to seamless switching capabilities for telematics operators who can maximize productivity by managing multiple vehicles.
It solves another pressing problem – the shortage of drivers.
Automation solves the driver shortage problem
There is a shortage of truck drivers. Realistically, automation is the only solution. Even in the United States, Walmart has begun offering drivers salaries of up to $110,000 per year, but it is still unable to meet the demand for drivers.
Research conducted by the IRU last year found that there were between 380,000 and 425,000 vacancies for truck drivers in Europe. Demand for drivers rose 44 percent between January and September 2022 – with no signs of these positions being successfully filled.
Furthermore, not enough drivers join the profession each year to replace those who retire. If the situation continues like this, about half of all truck driver jobs will be vacant in 2026, on average, among the countries surveyed. This significant shortage will have serious short-term consequences for the logistics industry and the entire economy.
Self-driving trucks play a big role in medium- and long-distance trucking, especially with predictable routes such as from a market or shipyard to a loading area.
Self-driving trucks can drive long distances without needing breaks or drivers. They drive predictably, reducing wear, resulting in fewer breakdowns and reduced repair costs.
However, commercial vehicle automation has long faced challenges due to delays in regulation, costly research and development, and the challenge of running out of money before commercial solutions are actually brought to market.
Cramer explained that the funding will be used to “double our efforts in building the industry leader in self-driving electric trucking.”
“We have a very sound plan with a step-by-step approach. We launch our product first in yards, then expand it there, and then in the future we take it to open roads.”
This progressive approach is what makes Fernride truly stand out. Driverless operations gain their flexibility and viability by operating on private land, “unlocking the benefits and reliable service of driverless operations to its customers from day one.”
This approach has already won the company partnerships with industry players such as Volkswagen, DB Schenker and HHLA.
The investment represents a significant opportunity to expand Fernride’s viability across different use cases.
In June, HHLA TK Estonia, a subsidiary of Hamburger Haven & Logistics AG (HHLA), and Fernride completed the first phase of a joint venture at the Estonian terminal, successfully integrating automated container handling into HHLA TK Estonia’s work processes.
Estonia is a country known for its digital-first approach to innovation. HHLA is always testing its technology in Estonia “because it wants to move quickly and at a fast pace,” Kramer explained.
“They don’t start right away in the largest terminal, but drive operations where you can innovate quickly, and then scale to other terminals and other locations.”
New investors bring strategic advantages
New investors in Vernried include the German Deep Tech and Climate Fund (DTCF), a $1 billion investment fund funded through German “Future Funds” and a private ERP fund created to drive the growth of deep tech and climate companies in Germany and Europe, along with San Francisco. Munich-based Re Ventures, Bayern Capital, and Klaus Kleinfeld, who also holds the key role of Chairman of the Board of Management of Vernried.
Kramer explained that the new investment has many strategic advantages.
“There are some new questions that arise when you also want to innovate on the insurance side, and we now have the investment arm of Munich Re, the world’s largest reinsurer, and a global leader in basic insurance and insurance-related risks come on board.
We also benefit from funders who have close links with government, which is very useful when you want to regulate autonomous vehicles in the future. Klaus Kleinfeld brings a global perspective to our Board of Directors.”
These investors add to the strong roster of existing venture capital support from 10x Founders, Promus Ventures, Fly Ventures, Speedinvest and Push Ventures, along with corporate investors HHLA Next and DB Schenker via Schenker Ventures and Krone.
“As CEO, this is very positive momentum for our next phase of growth.”
The company has more than 130 employees working in offices located in Munich and Wolfsburg.
Dr. Elizabeth Shrey of DTCF adds to the news:
“Fernride has assembled an exceptional team in the industry that has the potential to develop into a leading global technology champion from Germany.
Vernride’s pioneering technologies that automate and decarbonize the supply chain fit well with the focus of deep technology investment and climate funds.
“By starting with remote operations that initially keep humans in the loop, we believe Fernride’s step-by-step approach is the optimal path toward building fully autonomous capabilities,” said Timur Davis, Director, Munich Re Ventures.
“Fernride has already proven its ability to partner with key industry players and is positioned to quickly build on its unique strengths and capabilities to succeed where others in the market have failed.”
Kramer humbly admits that the company is well-positioned with a broad client base but also has such high interest that “we can’t work with everyone who wants to work with us.”
At a time when many startups and startups are struggling commercially, this is a very good problem to have.
Main image: via Fernride. Image: not supported.
