Silicon Valley startup Oway is using artificial intelligence to match partial shipments with available truckload capacity, aiming to reduce costs and boost carrier revenue, reports New York's FreightWaves.

Backed by Y Combinator and General Catalyst, Oway recently raised US$4 million in seed funding. Its platform bypasses the traditional hub-and-spoke network of less-than-truckload (LTL) shipping by using existing truckload routes.

Founder Phillip Nadjafov said the system helps carriers increase annual revenue by up to 30 per cent and enables shippers to save up to 50 per cent compared to conventional LTL services.

The platform uses machine learning and telematics data from electronic logging devices to identify optimal pickup points for partial loads. It connects securely with major ELD providers using encrypted protocols.

Once a match is found, dispatch teams are alerted and all documentation, including bills of lading, is prepared automatically. Carriers can accept or decline based on their schedule and capacity.

Mr Nadjafov said vehicles on popular Oway lanes are already seeing 30 per cent revenue increases. The company is running thousands of shipments across the West Coast and Texas, with plans to expand nationwide.

Additional benefits include faster delivery times, lower damage rates and simplified pricing. Oway does not classify freight or impose back charges, according to Mr Nadjafov.

The company plans to monetise through transaction fees and maintain an API-first model for integration with transportation management systems. Mr Nadjafov said Oway aims to serve as infrastructure, not a brokerage competitor.