Parallel Systems, founded by former SpaceX engineers, has raised $100 million in Series C funding to commercialize autonomous, battery-powered freight rail vehicles. The round was led by AVP, with participation from Hillspire, Agility Global, and others. The company's Panther vehicles can carry several tons of freight up to 500 miles without an operator, either independently or in short platoons that can split apart without human intervention.
The startup is betting on a segment railroads have largely ceded to trucking. As diesel prices hit record highs and at least 16 trucking companies went bankrupt in a few weeks, Parallel sees an opening to make short-haul rail profitable again. "Less than 500 miles is hard for railroads to do competitively," CEO Matt Soule told TechCrunch. The coupler-free design allows vehicles to separate at rail yards automatically, and onboard sensors monitor the track ahead for obstacles.
Trucking companies have shown interest even though Parallel is targeting their business. Drayage firms, which move freight short distances, earn per load and lose money when stuck in port traffic. By moving freight closer to customers' doors, Parallel could let them make more deliveries per day. The company has operated on 160 miles of track near the Port of Savannah under Federal Railroad Administration approval, and Soule says a first commercial payload is "coming up very soon."