Trucking currently dominates U.S. freight transport, handling about two-thirds of the 20.2 billion tons of cargo moved annually. Parallel Systems, founded by CEO Matt Soule, is aiming to disrupt this trucking dominance by injecting innovative, autonomous electric technology into the nation’s longstanding rail industry.
Based in Los Angeles, Parallel Systems has designed battery-powered autonomous freight vehicles that integrate seamlessly with existing train cars and railway infrastructure. Rather than relying on traditional freight trains—which require expensive locomotives to pull large sets of freight cars over long distances—Parallel’s solution focuses specifically on economically competitive, short-distance deliveries. The technology allows rail cars to autonomously couple and decouple without human intervention, significantly reducing accidents and expediting operational efficiency. Soule highlighted another crucial innovation: the enhanced braking capabilities translated into safer, more manageable stopping power compared to existing trains.
“We’ve developed a fundamentally different approach that makes rail competitive with trucking on a smaller scale, without major infrastructure changes,” Soule explained. “Our vehicles are designed from day one to function alongside traditional rail systems, complementing rather than replacing current freight operations.”
Parallel Systems recently achieved a major milestone, securing approval from the Federal Railway Administration for a pilot trial in Georgia. The company will conduct its first significant real-world test along a 160-mile corridor connecting the Port of Savannah to several regional distribution hubs.
In addition to its technical progress, Parallel has finalized a substantial new round of financing. A Series B funding round totaling $38 million was co-led by Anthos Capital and Collaborative Fund, with participation from Congruent Ventures, Riot Ventures, and other investors, pushing the startup’s total funding to more than $100 million. This capital will be earmarked for accelerating commercialization, preparing Parallel Systems for its planned initial commercial rollout in 2026.
Collaborative Fund partner Sophie Bakalar said that despite Parallel’s business falling outside the firm’s typical consumer-focused investment strategy, the company’s potential to transform a crucial aspect of the supply chain attracted their interest. According to Bakalar, freight logistics have considerable impact even on consumer-facing companies, making the opportunity difficult to pass up.
“I believe Matt and his team are particularly suited to tackle this formidable challenge,” Bakalar noted. “They’re uniquely equipped to deliver solutions that few others could. The market potential here is enormous and this is an ambitious endeavor well worth taking on.”
Although Soule’s professional background is not in rail specifically, he spent two decades in the highly regulated aerospace industry, including thirteen influential years at SpaceX overseeing avionics systems and software. While there, he saw firsthand the transformative power of innovation, and became intrigued by the potential for similar breakthroughs in less innovative sectors.
Since founding Parallel Systems in 2020, Soule has guided the company from conceptual development into the commercialization stage. Though persuading businesses to adopt new freight solutions presents considerable challenges, he believes strong market interest coupled with regulatory shifts—such as the ongoing uncertainty around tariffs—will drive firms toward cost-effective solutions offered by Parallel Systems.
“We’ve seen interest from all corners of the globe, but in the short term, we’ll concentrate our efforts primarily in the U.S. and Australia,” Soule said. He added that the industry recognizes the need for innovation in freight logistics, especially at a time when cost-cutting measures have become increasingly critical for companies’ operational strategies.
“This represents a generational innovation in freight transport,” he concluded. “We’re addressing real inefficiencies with targeted solutions, and that’s exactly what the market needs.”
