The transportation of goods in the United States is largely dominated by trucks, which manage approximately two-thirds of the 20.2 billion tons of freight moved annually. Matt Soule, founder and CEO of Parallel Systems, aims to transform this reliance by introducing a modern, autonomous, and electric element to the traditional railroad system.
Based in Los Angeles, Parallel Systems is developing battery-powered autonomous freight technology that can be utilized with existing freight cars and seamlessly integrated with current train control software. According to Soule, Parallel’s system offers a cost-effective alternative for companies to use rail instead of trucks for short-distance deliveries.
Soule explained to TechCrunch that rail transport has been underutilized because trains typically require large, costly locomotives to haul hundreds of freight cars over long distances, leading businesses to favor trucks for shorter shipments. Parallel Systems has devised a solution that allows train cars to autonomously connect and disconnect. This development facilitates a variety of delivery sizes without the dangerous manual handling currently required. Furthermore, Parallel’s technology enables freight cars to brake more quickly than traditional trains.
As Soule explained, Parallel Systems employs a different physical architecture to achieve truck-competitive economics on a smaller scale. The vehicles are compatible with existing rail infrastructure and are designed to operate alongside traditional rail operations rather than replace existing freight trains.
The Federal Railroad Administration recently approved Parallel Systems to commence a pilot program in Georgia. This initiative will enable the company to test its technology across a 160-mile route between the Port of Savannah in Savannah, Georgia, and several distribution sites within the state.
Parallel Systems has also secured a $38 million Series B funding round, led by Anthos Capital, with participation from Collaborative Fund, Congruent Ventures, and Riot Ventures, among others. This brings the company’s total funding to over $100 million, which they will use for commercialization efforts, aiming for an initial commercial launch in 2026.
Sophie Bakalar, a partner at Collaborative Fund, mentioned to TechCrunch that while Parallel Systems does not neatly align with the firm’s usual consumer-focused investments, the company piqued their interest through an introduction by an existing portfolio founder. Although Collaborative Fund typically does not invest in this sector, they recognize the significant impact that shipping and goods movement can have on the consumer companies they usually support. Bakalar acknowledged the opportunity presented by Parallel Systems, citing confidence in the team’s unique ability to address the challenge within the sizable market.
Despite lacking a specific background in the rail industry, Matt Soule has extensive experience in regulated transportation, having spent 20 years in the aerospace industry, including 13 years at SpaceX. Soule commented on the ongoing development of new technologies during his tenure in avionics at SpaceX and expressed curiosity about applying such innovations to industries that have seen less technological advancement.
Launched in 2020, Parallel Systems is now focused on the commercialization of its technology five years later. Soule recognized the potential challenge in persuading companies to shift their shipping and distribution strategies but noted there is a demand for alternative solutions. The company’s current focus is on the U.S. and Australia, although there has been global interest.
As the United States remains in a state of tariff uncertainty, Bakalar speculates that such economic conditions could increase demand for cost-saving solutions offered by companies like Parallel Systems. Soule described the technology as a “generational innovation” in freight, highlighting its significance within an industry that rarely experiences substantial change.
