Phantom Auto receives $42 million investment

Phantom Auto, a provider of remote operation software for logistics vehicles including lift trucks, has announced a strategic investment of $42 million led by ArcBest, a multi-billion dollar freight and logistics service provider, and NFI, one of the largest third-party logistics providers in North America.

ArcBest and NFI also executed commercial agreements to deploy thousands of Phantom-powered forklifts in the coming years, Phantom Auto added. The funding also includes investment from Bessemer Venture Partners, Maniv Mobility, OurCrowd, Perot Jain, Max Blankfeld, and other previous investors.

The global supply chain faces a critical labor shortage that is estimated to cost the US economy $1 trillion by 2030, Phantom Auto explained. With thousands of driving jobs unfilled, high turnover, and with challenges from the COVID-19 pandemic, the problem is only getting worse, the company added. Phantom touts that it can help solve the labor shortage with human-centered remote operation, enabling people to remotely operate forklifts, trucks, robots, and other vehicles from up to thousands of miles away.

In addition to the funding, Michael Newcity, Chief Innovation Officer of ArcBest and President at ArcBest Technologies, will join Phantom’s Board of Directors. “Collaborating with the right technology partners has been key in elevating how we serve our customers and create opportunities for our employees,” commented Newcity. “Having worked with Phantom for multiple years, we’ve seen firsthand how their technology unlocks new use cases for remote work and accelerates the deployment of automation. Phantom’s solutions are a game-changer for the entire logistics industry.”

Sid Brown, CEO of NFI, added that Phantom is aligned with NFI’s philosophy of a ‘people-led, technology-enabled’ approach to solutions. “Our employees are our most important asset, and without them we would not be able to serve our customers,” Brown said. “With the elimination of having to physically be on site, we can attract more diverse candidates that do not live within driving distance of the warehouse, live in alternative time zones, or who may not have been interested in working in a warehouse environment.”

Phantom will use the latest funding to rapidly increase headcount, develop new technologies, and execute on key commitments to top-tier customers. While Phantom is accelerating growth in the forklift segment, the company also continues to support and grow in multiple logistics verticals including delivery robots, trucks, and more.

“We have seen an explosion in demand for remote operation across the supply chain as our customers seek innovative solutions to expand access to labor and fuel growth,” said Shai Magzimof, Co-Founder and CEO at Phantom Auto.

Elliot Katz, Co-Founder and Chief Business Officer, added, “Logistics companies need workers to fill important jobs, and workers need those jobs to be accessible and safe; remote operation solves for both aims.”