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Freight Technologies, Inc. Announces Discontinuation of Strategic Alliance with Freight Company from Mexico to Focus on Higher-Margin Opportunities
HOUSTON, May 05, 2023 (GLOBE NEWSWIRE) -- Freight Technologies, Inc.. (Nasdaq: FRGT) (“Fr8Tech”), a technology company whose custom-developed Fr8App, an
About this update from Freight Technologies, Inc.
[{"type":"text","content":"HOUSTON, May 05, 2023 (GLOBE NEWSWIRE) -- Freight Technologies, Inc.. (Nasdaq: FRGT) (“Fr8Tech”), a technology company whose custom-developed Fr8App, an industry-leading freight-matching platform powered by AI and machine-learning offering a real-time portal for B2B cross-border shipping and domestic shipping within the USMCA region, announces the discontinuation of its alliance with Zaro Transportation. Javier Selgas, CEO of Fr8App, said, “At Fr8Tech, we entered into the strategic alliance with Zaro expecting to be able to reach a certain level of sales at margins that we expected would be lower than our other business segments but at acceptable levels. Our alliance with Zaro enhanced Zaro’s ability to provide services in the tremendously competitive U.S. freight market, but recent market conditions – including significant insurance premium increases for our alliance -- caused us to re-evaluate the longer-term prospects of this opportunity. We decided to discontinue the alliance to allow the Fr8Tech team to focus on our higher-margin segments. We recently announced that we had our highest monthly increase in new clients during the month of March 2023. We need to focus our limited resources to growing these promising segments over what is now a highly competitive, low-margin U.S. domestic business.” About Freight Technologies Inc. Freight Technologies (Nasdaq: FRGT) (“Fr8Tech”) is a technology company developing solutions to optimize and automate the supply chain process. Its wholly owned subsidiary, Freight App, Inc. (Fr8App), is a B2B cross-border shipping marketplace in the USMCA region powered by AI and machine learning. Focused on making shipping transparent and efficient, Fr8App provides carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road (“OTR”) shipping. Fr8App uses its proprietary technology platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies, such as live pricing and real-time tracking, digital freight marketplace, broker, transportation management, fleet management, and committed capacity solutions. The company is headquartered in Houston, Texas. For more information, visit fr8technologies.com. Forward-Looking Statements This press r...