FR8relay has received a nearly $650,000 Small Business Innovation Research (SBIR) Phase II award from the U.S. Department of Agriculture.
The Bentonville-based company is developing mobility software that pools shipments and matches drivers with trailers and cargo in a relay model to ensure equipment and cargo keep moving while returning drivers home daily.
In Phase II, the FR8relay team will implement a live case study using the relay method on the Dallas-Chicago trucking corridor.
ASBTDC Assistance
FR8relay has engaged the Arkansas Small Business and Technology Development Center for SBIR application development services since July 2020. The USDA Phase II award marks the team’s third federal grant. FR8relay received the accompanying USDA Phase I award in 2021, and most recently won a $206,468 award from the U.S. Department of Energy in June.
Rebecca Todd, ASBTDC’s innovation specialist, and Catherine Corley, business consultant in ASBTDC’s Fayetteville regional office, worked closely with the company on its USDA proposal.
“Rebecca Todd, Catherine Corley and the ASBTDC were incredibly supportive in the development and review of our Phase II USDA proposal,” said CEO Aayush Thakur.
A Widespread Problem
Although the United States relies on trucking to move 72.5% of its freight, the current model leads to wasted fuel, mismanaged capacity, and an exhausting job for drivers. Combined, these inefficiencies cost over $8 billion annually and compromise the sustainability of this crucial industry.
“The conventional point-to-point long-haul trucking model, coupled with federal Hours of Service regulations, cause equipment and cargo to spend as much as half the shipping time idling roadside,” said Thakur. “This contributes 48-64 tons of wasted carbon-based emissions and 3,500-4,500 gallons of wasted diesel fuel per truck annually.”
Freight capacity limitations contribute to these emissions while creating an unsustainable work environment for long-haul drivers. A significant portion of truckers’ time on the road is unpaid, creating a mentally and physically exhausting profession with limited financial payoff.
FR8relay’s novel software could increase energy productivity and truck utilization while reducing greenhouse emissions. Because the system uses a relay model, it can slash drivers’ wasted road hours dramatically, reduce turnover, and create economic development opportunities for distressed communities along major trucking corridors.
“The relay model presents a compelling alternative to the conventional point-to-point method by eliminating the unnecessary truck idle time built into supply chains,” said COO Deme Yuan. “This technology will be supported by a machine learning-based predictive analytics module that anticipates day-to-day relay disruptions and recommends mitigation strategies.”
Being able to swap tractors within a relay model could also lead to the implementation of electric heavy-duty fleets in long-haul freight transportation, a feat that has previously been unachievable due to short battery life. Now, trailers with cargo could continue moving while electric tractors are swapped out for a battery charge.
“Our USDA proposal included a letter of support from Forth, a nonprofit trade association working to electrify transportation,” said Yuan. “It spoke to the potential of FR8relay’s model to bridge the gap to long-haul trucking electrification. Similarly, our model and technology could enable deployment of hydrogen fuel cell-powered tractors.”
Putting Research Into Practice
The FR8relay team developed its software through a rigorous customer discovery process involving over 200 stakeholders.
“The concept of relay trucking is not foreign to carriers, but the scalable execution of a relay system within the real-world complexities of trucking is what they are all waiting to see before adopting such a model,” Yuan said.
Through its USDA Phase I study, FR8relay determined that the relay approach could achieve three major value propositions for the long-haul freight industry:
- Return truck drivers home daily, transforming long-haul driving into a localized shift job
- Cut shipping times by 20-50%
- Double the utilization of tractors and trailers
To demonstrate these propositions in action, FR8relay is organizing a live pilot case study on the Dallas-Chicago trucking corridor. Three rural communities will be used as intermediate exchange nodes, with suburban or exurban areas near Dallas and Chicago serving as terminals.
Key objectives of the pilot study include the completion of a relay software beta product, the coordination of participants in five relay exchange node communities, and rigorous monitoring and evaluation throughout the study.
“The Phase I study highlighted the risk of disruption events,” said Yuan, referring to any traffic accidents, equipment breakdowns, and personnel issues that can compound delays. “While our simulations showed the effectiveness of substitute drivers or trucks as mitigation measures to correct for disruptions, a live pilot is needed to assess how well mitigations translate into real-world trucking scenarios.”
Yuan said that initial outreach to rural communities provided significant validation of community partnership interest from rural towns on the Dallas-Chicago trucking corridor.
“Workers from rural communities are overrepresented in the trucking industry, so they are disproportionately affected by the current negative impacts of the job.” Thakur said. “Over 48% of adults in rural communities do not have a college degree, meaning rural workforces need greater access to stable jobs that do not require a college diploma.”
The team plans to launch Phase II research and development effort in September.
“Community support is key to making our collaborative trucking model a success,” Thakur said. “We’d greatly appreciate support from the community in connecting with stakeholders like truck drivers, gas station owners, and diesel mechanics, and work together to develop the best way to collaborate using our platform.”
Advice for SBIR Applicants
“Take advantage of the resources at the ASBTDC,” Thakur said. “Preparing a proposal is a lot of work and calls for attention to many specific requirements. Enlisting these experts as your support system is critical. They will guide you, answer your questions, make sure you stay on track of your deadlines, and watch out for potential mistakes that could get your proposal disqualified. They will significantly increase the chances that your world-changing innovation is communicated clearly to SBIR reviewers.”
