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FRAYT Raises $7M to Bring Last-Mile On-Demand Delivery to Over 50 Major U.S. Markets

Alexandra Blake
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Alexandra Blake
11 minutes read
المدونة
ديسمبر 04, 2025

FRAYT Raises $7M to Bring Last-Mile On-Demand Delivery to Over 50 Major U.S. Markets

Recommendation: securing local driver fleets and driver networks across all 50+ markets now to accelerate on-demand delivery through Frayt’s technology and saas platform. Unite the team around a common offer that reduces pain for retailers and customers, and move aggressively to sign early pilots with national firms and regional chains, keeping the effort united across all markets.

Frayt’s $7M raise enables a phased rollout across 50+ markets, prioritizing mobile-first experiences, driver app improvements, and reliable service standards. The company targets merchants, retailers, and gig-based fleets, aiming to recognize pain points in last-mile logistics and offer a unified solution through a saas-powered platform. The strategy sits within the broader industry shift toward on-demand, with players like amazon setting speed and reliability benchmarks.

To execute, Frayt will scale its التكنولوجيا stack, expand mobile driver apps, and hire a united team to operate across the 50+ markets. The plan includes recruiting driversوكذلك firms and independent operators, and deploying routing analytics to shorten delivery times من خلال optimized paths. This approach will deliver الحلول that reduce complexity for retailers and improve customer satisfaction.

Retailers will gain a more predictable الخدمة window, cutting execution pain in pilot regions. The united approach helps firms consolidate last-mile capabilities, while the mobile interface gives drivers real-time updates and enables customers to request delivery windows.

Please join the momentum by engaging with Frayt’s growth. For partners seeking to offer faster deliveries, please share your request for proposals; the team is ready to collaborate and tailor الحلول to your operations. This funding milestone demonstrates the industry’s appetite for united, secure, and scalable last-mile options through a trusted الخدمة and platform.

Frayt Last-Mile Delivery Funding Plan

Frayt Last-Mile Delivery Funding Plan

Allocate 40% of the funding to ohio expansion, establishing regional hubs in Columbus, Cincinnati, and Cleveland, and funding onboarding and driver-incentive programs to accelerate ramp-up and coverage in the first wave.

Invest 35% in product development and operations to deliver an extremely intuitive mobile experience for customers and drivers, backed by a large-scale routing engine that reduces idle time and improves efficiency for same-day deliveries. The effort covers multiple products, including rider apps, driver apps, and retailer integrations.

Reserve 15% for partnerships and market deployments, including the release and announce of pilots with amazon in select markets, plus carrier and retailer integrations to streamline handoffs and expand capacity.

Allocate 10% to governance and talent, hiring a professional operations lead and regional managers to oversee ohio hubs, driver networks, and customer success, with dashboards to monitor on-time performance and cost per stop. luke said the plan centers on reliability and data-driven decisions to scale to 50+ markets.

источник notes that april milestones remain aligned with market readiness, capacity, and customer demand, with ongoing optimization across the network.

Markets Covered and Expansion Timeline Across 50+ U.S. Cities

Target Cincinnati, ohio, as the first on-demand last-mile hub and secure a reliable pilot with local carriers; then scale to 50+ markets in funding rounds over the next years. A dedicated fund supports onboarding and early expansion steps.

Markets cover about 50+ cities across the united states, including cincinnati, columbus, cleveland, indianapolis, chicago, detroit, nashville, louisville, atlanta, dallas, houston, denver, phoenix, los angeles, san francisco, seattle, new york, philadelphia, boston, miami, and some others, spanning most states and other corridors.

Schigel leads the expansion strategy, coordinating carriers and city selections. The plan from their team brings on-demand capability to high-volume delivery windows and scales to meet growing demand from national brands. Time matters for retailers, so the schedule emphasizes time-to-market discipline to keep rollout efficient across markets.

Expansion timeline highlights: Year 1 completion marks the Cincinnati hub, onboarding 2–3 carriers, and establishing cross-state routes; Year 2 adds 10–15 markets across ohio, indiana, illinois, michigan; Year 3 reaches 40+ markets, with West Coast and Southeast growth; Year 4 surpasses 50 markets, deepening partnerships, including amazon channels. Retailers can request a pilot in their city to come with a plan to partner and meet on-demand demand.

Series A Lead Investor and Other Participants

Partner with the Series A lead investor to accelerate scale in Cincinnati, Ohio, by expanding carriers, bolstering the delivery network, and using technology that drops delivery times and improves profitability.

The leadership behind the round brings real market perspective and an extremely valuable track record in securing partnerships, including connects between carriers and merchants, enabling further grow in the market and a stronger share in the U.S. last-mile market.

The fund will be providing resources to grow operations, improving efficiency and profitability, with part of the capital dedicated to Cincinnati and Ohio operations and others expanding to 50+ markets.

To act now, FRAYT should align the lead investor with a formal partner program, secure additional carriers, and accelerate technology investment to grow the network and ensure profitability. This approach is more scale-driven than single-vendor models.

أسبكت التفاصيل
Total raise $7M
Lead investor Undisclosed lead investor with logistics and tech focus
مشاركون آخرون Regional funds and strategic partners
Key markets targeted 50+ U.S. markets, including Cincinnati, Ohio
استخدام الأموال Scale delivery network, improve efficiency, securing profitability
Strategic outcomes Stronger carrier connects, broader market share, faster drop times

Allocation of the $7M: Technology, Network Expansion, and Carrier Onboarding

Recommendation: allocate 40% of funding to technology and SaaS tooling, 35% to network expansion, and 25% to carrier onboarding. This mix accelerates the vision, expands coverage, and delivers same-day, tracked shipping experiences for customers.

  • Technology investments – Build a scalable platform with a robust SaaS stack, integrate devices for field teams, and enable real-time visibility across the entire workflow. Focus on the same-day routing engine, automated alerts, and a governor on completion milestones to recognize delays early. The enhanced efficiency will reduce friction for their customers and support teams.
  • Network expansion – Prioritize high-impact markets and rapid expansion to 50+ major U.S. markets, using cincinnati as an initial hub for testing and iteration. Target medium-sized and small shippers to broaden the customer base, while ensuring per-mile route efficiency improves with every added market.
  • Carrier onboarding – Onboard carriers aggressively with a standardized, SaaS-enabled workflow. Provide dedicated onboarding support, track progress, and ensure added capacity along scheduled lanes. Aim for a clear timeline from onboarding to go-live, with regular updates in the same cadence as the growth plan.

Execution milestones include: added carrier partners, completion of initial market deployments, and measurable gains in shipping speed and reliability. The funding will empower the team to deliver same-day options at scale, recognizing early wins in cincinnati and cascading benefits to the broader network. We will offer transparent performance metrics to carriers and customers alike, driving growing engagement and a compelling value proposition for every venture.

On-Demand Platform Operations: Order Flow, Real-Time Tracking, and SLA Management

On-Demand Platform Operations: Order Flow, Real-Time Tracking, and SLA Management

Recommendation: Deploy a unified order-flow cockpit that automates intake, routing, and SLA checks, paired with real-time tracking, and run a multi-market pilot to target a 20–25% improvement in on-time performance while boosting profitability. Start with a recent release of a SaaS solution, then scale across key markets to leverage investors’ interest and deepen leadership in the on-demand space.

Strategic framework to enable large-scale execution sits on four pillars: order flow orchestration, real-time visibility, SLA discipline, and data-driven optimization. The technology stack should be purpose-built for on-demand operations, with modular services that can grow from a single market to a chain of markets across the country. This approach supports having a diverse set of ventures and partners, including share opportunities with major players like Cargill, while keeping a lean core focused on profitability and scale.

Order Flow Orchestration

  • Define a state machine for orders: intake, allocation, pickup, in-transit, delivery, and exception handling, so every step aligns with SLA commitments and carrier capacity.
  • Implement dynamic routing that balances workload across a large carrier network, reducing idle time and miles traveled per shipment while increasing on-demand capacity in different markets.
  • Adopt a rule-based decision layer that considers distance, traffic, driver availability, and service-level targets, improving the share of profitable loads.

التتبع والرؤية في الوقت الحقيقي

  • Integrate GPS, carrier updates, and customer ETA recalculation into a single feed; refresh ETA every 2–5 minutes in peak windows to minimize surprises for customers and partners.
  • Offer geofence-based alerts for SLA windows, delays, and exceptions, enabling proactive communication with customers and leadership.
  • Publish a consistent, customer-facing status stream while maintaining internal dashboards for operations teams to act quickly on deviations.

SLA Management and Compliance

  • Catalog SLAs by market, service type, and load class; enforce thresholds with automatic escalations to leadership when violations occur.
  • Measure key SLA metrics: on-time rate, first-attempt delivery, and average delay by mile, then tie improvements to compensation or incentives for partner networks.
  • Synchronize SLA policies with carrier commitments and customer expectations, ensuring every stakeholder understands the required performance level.

Data, Metrics, and Continuous Improvement

  • Track cycle time, distance per mile, utilization, and profitability by market; compare performance across some markets to identify best practices for scale.
  • Use recent releases of the platform to run A/B tests on routing heuristics and tracking frequency, documenting results for a clear growth path over years.
  • Share insights with investors and leadership to inform decisions on new rounds, partner expansions, and go-to-market strategies in jobsohio and other markets.

Operational Cadence and Ecosystem

  • Establish a cadence of weekly reviews with the leadership team to assess SLA adherence, capacity constraints, and profitability impact across markets.
  • Coordinate with partners and ventures to align incentives, sharing data insights that drive mutual growth and market penetration.
  • Prepare a transparent release plan that communicates milestones to investors and some key stakeholders, highlighting how the platform supports growth of the company across markets.

Practical recommendations for quick wins

  • Launch a multi-market pilot in jobsohio and adjacent markets, focusing on improving on-demand throughput by tightening order flow logic and real-time tracking feeds.
  • Adopt a modular saas architecture to enable rapid releases and easier onboarding for new partners; align with leadership on the roadmap and desired profitability milestones.
  • Set up partner dashboards that show capacity, SLA adherence, and profitability by mile; use these insights to refine the partner network and expand into new market segments.

Benefits for Large Shippers and Integration with ERP/OMS

Integrate ERP/OMS with Frayt’s last-mile platform to sync orders, automate carrier selection, and push real-time shipment status into your ERP; this approach improves completion times and raises visibility for operations and finance teams.

Across markets and states, enterprise shippers gain centralized data, standardized processes, and faster onboarding. API-based connections remove manual entry, add capacity for growing volumes, and enhance visibility, helping you defend share across key accounts and markets.

Define KPIs in ERP/OMS: on-time delivery, order cycle time, dwell time, and exception rate. Results are tracked automatically, giving executives a single source of truth for capacity planning and investment decisions.

Pilot plan: once the Cincinnati pilot proves ROI, expand to additional markets and states; aim to complete rollout within two years.

Leadership notes: Schigel highlights how added visibility accelerates growth for enterprise shippers, while Denny draws on years of industry experience to align IT and logistics teams.

Frayt announced a $7M round to fund ERP/OMS integrations and back growth for large shippers; most will benefit from this added capacity and improved visibility. Frayt will announce ERP/OMS integration milestones and details.

Risks, Compliance, and Competitive Landscape

Create a multi-state compliance playbook now, with a centralized risk registry and weekly audits. This plan connects frayts’ network with shippers and drivers, standardizing scheduled and on-demand routes across more than 50 states. Build a recent, simple forms process for insurance, background checks, and device verification to cut pain for drivers and shippers alike, like-minded partners included. Include a clear drop-off policy and a simple request channel so customers can request changes without delays. This foundation will help accelerate product adoption and improve profitability over time.

Competitive landscape analysis should rely on concrete metrics: compare profitability by part of the network, assess the impact of devices on cost per delivery, and track volume in medium-sized markets versus large hubs. frayts connects fleets with shippers through on-demand and scheduled jobs, and schigel’s team emphasizes speed, reliability, and strong support for both shippers and drivers. Recent pilots in several states yielded a tremendous uplift in on-time drop-offs and customer satisfaction, and we are thrilled to extend that success to 50+ markets.

Risks and mitigations include misclassification, wage rules, and data privacy. Set controls: driver verification, background checks, insurance requirements, and device security. Require two-factor authentication for access, audit data access, and limit staff who can release updates. Use a staged rollout to minimize disruption while collecting feedback. please review quarterly metrics and provide input to help refine responsibilities and funding.