Dive Brief:
- Ryder System has acquired Baton, a San Francisco-based logistics tech startup, the carrier announced Thursday.
- The trucking company plans to incorporate the tech firm’s transportation network optimization expertise into its supply chain and transportation solutions businesses.
- The deal, which closed Aug. 31, follows an earlier investment from Ryder’s venture capital fund in Baton in March 2021. The value of the acquisition was not disclosed.
Dive Insight:
The acquisition of Baton is another example of the hot M&A market in the trucking industry, driven in part by ongoing labor and capacity constraints.
Ryder’s M&A strategy involves adding capabilities, geographies and industry verticals to the company’s portfolio, especially in its supply chain and dedicated businesses, Ryder Chairman and CEO Robert Sanchez said during a Q2 earnings call.
During the call, Sanchez touted plans for the carrier’s venture capital fund, Ryder Ventures, to invest $50 million over the next five years in startups “to support development of new products that benefit our customers and solidify our position as an industry leader.” Ryder Ventures backed Baton’s Series A funding round in March 2021.
At Ryder, Baton’s team of product developers will lead the innovation and development of the next generation of customer-facing technologies, Sanchez said in a statement. “Part of that strategy is to bring new technology-driven solutions to market,” he said.
Baton’s mission is to eliminate wasted hours in trucking, and the tech startup has developed solutions including a network of autonomous vehicle transfer stations, according to its website.
The acquisition by Ryder will allow Baton to broaden the scope of its services to include “next-gen technologies to optimize supply chains from end-to-end,” co-founder Andrew Berberick said in a statement.
