Phantom Auto, a California-based remote operation software for logistics vehicles specialist, has raised $42m in a funding round led by freight and logistics service provider ArcBest and third-party logistics company NFI.

ArcBest and NFI have executed commercial agreements to deploy thousands of Phantom-powered forklifts in the coming years. 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 labour shortage that is estimated to cost the US economy $1tn by 2030. With thousands of driving jobs unfilled, annual turnover often exceeding 90%, and challenges from the Covid-19 pandemic, the problem is getting worse. Phantom is helping solve the labour shortage with human-centred remote operation, enabling people to operate forklifts, trucks, robots and other vehicles remotely from thousands of kilometres away.

By decoupling labour from location, the company increases labour access and retention, safety, productivity, and resilience across the supply chain. With Phantom, supply chain operators can tap into drivers from anywhere, connecting people who want to work with jobs that need to be filled.

The large orders from ArcBest and NFI, along with Phantom’s existing commercial traction in the material handling industry, indicate the fast-growing demand for remote-enabled forklifts among supply chain and logistics operators. To meet this demand and accelerate growth, the company is rapidly growing its team, and rolling out technology and service capabilities to support scaled forklift operations.

As part of their partnership, Phantom and ArcBest will leverage each company’s technologies to go-to-market with multiple integrations, beginning with human operated, remote-enabled autonomous counterbalance forklifts.

In addition to the funding, Michael Newcity, chief innovation officer of ArcBest, 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,” said Newcity. “Having worked with Phantom for multiple years, we’ve seen first hand how their technology unlocks new use cases for remote work and accelerates the deployment of automation.”

Sid Brown, CEO of NFI, added: “Phantom is aligned with NFI’s philosophy of people-led, technology-enabled. Our employees are our most important asset, and without them we would not be able to serve our customers. 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 funding to increase headcount, develop 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 and trucks.

“We have seen an explosion in demand for remote operation across the supply chain as our customers seek innovations to expand access to labour and fuel growth,” said Shai Magzimof, CEO of Phantom Auto.

Elliot Katz, 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.”

ArcBest is a multibillion-dollar integrated logistics company founded in 1923 and now has more than 14,000 employees across more than 250 campuses and service centres.

“As ArcBest continues on its rapid growth trajectory, we are focused on optimising our performance through technological innovation,” said Judy McReynolds, CEO of ArcBest. “Phantom Auto strategically aligns with our long-term goals, complementing ArcBest’s existing innovation pipeline, technology roadmap and partnerships, and building on the important work already underway to support our customers’ success. This investment reflects our vision of great people leveraging smart technology to strengthen performance and relationships to benefit all of our stakeholders, including our shareholders.”

NFI is an integrated North American supply chain provider headquartered in New Jersey. Privately held by the Brown family since its inception in 1932, NFI generates more than $3bn in annual revenue and employs over 15,000 people.

Phantom Auto specialises in remote operation of all types of vehicles, enabling people to supervise, assist and drive vehicle fleets remotely. These include forklifts, robots and trucks. The company’s proprietary software delivers secure, low-latency communication over volatile wireless networks for reliable sensor streaming and safe vehicle control.