The domestic 3PL market was large, highly fragmented and ripe for optimization through technology. 3PL penetration was low, leaving a significant opportunity to create relationships with shippers that typically worked directly with carriers and therefore paying higher rates.
At the time of our investment, GlobalTranz was the only company in the market to try to solve these pain points by combining a leading Internet-based technology platform with a predominantly agent-based sales model. While the technology platform drives retention, the agent model drives extensive reach into the small business market which is not easily accessible for carriers or traditional freight brokers
Larry Cheng, Volition Managing Partner recalls, “We were very impressed with the business from the first time we learned about it. The GlobalTranz management team was young, aggressive, and highly motivated to build a massively successful business. Additionally, the Company’s agent-based sales force was unique and enabled aggressive but capital efficient growth.”