In a significant move into the freight industry, African Rainbow Capital Investments (ARC), founded by the prominent Patrice Motsepe, who currently chairs the company, has announced its increased investment in Linebooker, a rapidly growing online freight platform.
Linebooker, launched in 2017, offers a dynamic online solution for customers seeking transport services for their sizeable goods, acting as a vital link between customers and trucking services. Over the past three years, the company has demonstrated impressive financial strength, doubling its annual revenues. Much of this growth can be attributed to the faltering services of Transnet, which failed to meet the transportation needs of pivotal sectors such as mining, retail, farming, and manufacturing.
Although ARC has been a strategic partner of Linebooker since its inception, today’s announcement reveals a significant capital boost of around R67m, escalating ARC’s stake in the company to a commanding 70%.
Commenting on the development, Linebooker CEO Naude Rademan optimistically stated that the market potential remains expansive. “It will be a good thing if Transnet gets its act together,” he remarked, indicating that the market size is robust enough to sustain Linebooker’s ambitious growth forecasts regardless of potential competition.
This reinforced partnership between ARC and Linebooker underscores a strategic vision that acknowledges the immense potential of digital platforms in streamlining and transforming traditional industries. As the freight industry faces inevitable technological disruptions, investments such as these are pivotal in shaping its future trajectory.
Motsepe owns an indirect 27-percent stake in African Rainbow Capital Investments.
