In the U.S., trucks dominate the freight transport industry, moving about two-thirds of the annual 20.2 billion tons of goods. However, Matt Soule, the CEO of Los Angeles-based Parallel Systems, aims to disrupt this trend by introducing autonomous electric freight technology that modernises traditional rail systems. Soule believes that with the right innovations, rail can become a more cost-effective alternative for short-distance deliveries compared to trucks.
Parallel Systems has developed a battery-powered solution that integrates with current freight cars and train control systems, allowing for autonomous attachment and detachment of train cars. This innovation not only simplifies operations—removing the need for manual coupling, which can be dangerous—but also enables quicker braking than conventional trains.
Soule emphasises that their technology is designed to work alongside existing rail infrastructure rather than replace traditional freight systems. By focusing on a smaller scale, their approach aims to make rail economically competitive without the requirement for large and expensive locomotives, which have been a barrier to rail usage for shorter hauls.
Recently, the Federal Railroad Administration approved Parallel to pilot its technology along a 160-mile route in Georgia, connecting the Port of Savannah to various distribution points. This development comes alongside a successful $38 million Series B funding round led by Anthos Capital, bringing the total investment in Parallel to over $100 million. The funding will support its aim to launch commercial operations in 2026.
Sophie Bakalar, a partner at Collaborative Fund, acknowledges that while the investment doesn’t align with their usual focus, they couldn’t overlook the potential impact of improving the freight sector, which is crucial for the consumer businesses they typically support. With a solid team and substantial market potential, Parallel is well-positioned to address the significant challenges faced within this industry.
Soule, who lacks formal rail experience but has a robust background in regulated transportation and aerospace, founded Parallel in 2020. His curiosity about applying aerospace technologies to freight solutions has driven the company’s progress.
While changing established shipping practices may be challenging, there is a clear demand for innovative solutions. Soule notes that interest in their technology has come from all over the world, although their immediate focus is on the U.S. and Australia.
The timing is particularly pertinent given the current tariff situation in the U.S., which could increase demand for cost-effective solutions in freight transport. Soule believes that Parallel’s innovations represent a significant shift in freight logistics, addressing modern needs within an industry that has historically resisted change.
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