Freight and logistics provider ArcBest Corp. of Fort Smith has announced a $25 million investment in Phantom Auto, a Silicon Valley company that provides remote vehicle operation software.
The investment is part of Phantom Auto’s latest funding round. As part of the deal, ArcBest Chief Innovation Officer Michael Newcity will join Phantom’s board of directors, ArcBest said in a news release.
Phantom’s technology allows users to remotely supervise, assist and drive vehicle fleets from up to thousands of miles away – including forklifts, robots and trucks, according to its website. It can help protect drivers by removing them from risky environments.
The company also bills its platform as a solution to driver shortages, and a tool to reduce the cost of flex and surge staffing.
Judy McReynolds, president and CEO of ArcBest, said the investment in Phantom is part of the company’s focus on optimizing performance through technological innovation.
“Phantom Auto strategically aligns with our long-term goals, complementing ArcBest’s existing innovation pipeline, technology roadmap and partnerships, and building on the important work already underway to support our customers’ success,” she said in the release. “This investment reflects our vision of great people leveraging smart technology to strengthen performance and relationships to benefit all of our stakeholders, including our shareholders.”
About 4% of ArcBest’s annual revenue is spent on technology and innovation. The public company (Nasdaq: ARCB) said nearly half of that budget is dedicated exclusively to growth and transformative initiatives like those developed at Phantom.
“We continuously analyze emerging technologies and collaborate with partners to develop modern logistics solutions,” Newcity said in the release. “Phantom Auto is solving fundamental challenges facing the supply chain industry, and this investment aligns perfectly with our commitment to advancing a culture of innovation and enabling a more efficient and sustainable supply chain.”
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