Modern Financial Solutions Driving Innovation in Trucking

Embedded Partners
Bookmark

AtoB, led by Co-Founder and CEO Vignan Velivela, is redefining the financial and operational infrastructure of the trucking industry. This industry, often overlooked in terms of innovation, plays a critical role in the U.S. economy, employing millions and facilitating the movement of goods across the country. Vignan’s vision for AtoB centers on empowering small trucking businesses with modern financial tools to reduce costs, streamline payments, and improve overall efficiency.

 

In this recap of his appearance on the SMB Tech Innovators Podcast, we explore Vignan’s journey, the core challenges trucking businesses face, and how AtoB addresses those issues through its innovative platform.

 

Key Takeaways:

 

  • COVID-19 highlighted trucking’s critical role in supply chains.
  • Legacy payment networks hinder the industry’s financial modernization.
  • AtoB aims to build a “Stripe” for trucking to simplify transactions.
  • Partnering with Uber Freight enhances AtoB’s reach among small businesses.
  • Fuel is the largest cost for trucking; AtoB’s fuel card reduces expenses.
  • Truck drivers often face delays in receiving payment, impacting cash flow.
  • Small trucking businesses struggle with access to digital payroll solutions.
  • Thorough customer research has driven AtoB’s product decisions.
  • Electric vehicle adoption in trucking will initially focus on local fleets.

Listen to the Podcast:

Vignan Velivela: An Engineer with a Vision for Infrastructure

Vignan’s path to founding AtoB began in a small town in India, where his early fascination with engineering and infrastructure took root. He was inspired by the “silent infrastructure” that powers daily life—utilities, transportation, and logistics. Vignan’s academic and professional journey spanned robotics research with NASA, work in self-driving technology at Cruise Automation, and his earlier experience with a payments company in India.

 

These diverse experiences gave him a deep understanding of technology and financial systems. At AtoB, Vignan and his team have married these two domains, focusing on the trucking industry—a sector he describes as essential yet underserved in terms of modern financial tools.

 

The State of the U.S. Trucking Industry: A Legacy in Need of Innovation

Trucking is a cornerstone of the U.S. economy, with nearly $1 trillion in transactions annually and millions employed in the sector. Yet, despite its size and importance, the industry relies on outdated financial systems. Vignan highlights several key issues:

 

  • Legacy Payment Systems: Trucking companies often rely on closed-loop card networks developed in the 1960s and 1970s. These systems come with high costs and inefficiencies, making it harder for small businesses to operate profitably.
  • Paper-Based Payroll: Many trucking companies still use paper checks or Excel sheets for Payroll, even as drivers spend days on the road logging thousands of miles.
  • High Working Capital Costs: With interest rates often exceeding 30% APR, trucking companies face significant financial strain when managing their cash flow.

 

These challenges are amplified for small businesses, which comprise 95% of the U.S. trucking industry. These businesses often operate in rural areas and need access to modern financial tools, creating barriers to growth.

US trucking should be part of the G20. Given the economic size, it’s almost 1 trillion dollars in transactions and payments.” Vignan Velivela Co-Founder and CEO, AtoB

AtoB: Building a Modern Financial Infrastructure for Trucking

AtoB aims to solve these systemic issues by creating a unified financial platform for trucking companies. Vignan describes the platform as a “Stripe or Square for trucking,” bringing the benefits of modern financial technology to an underserved industry. Here are the key areas where AtoB is making a difference:

 

  • Modernizing Payments and Fuel Cards

Fuel is one of the largest expenses for trucking companies, accounting for 30–40% of their costs. Traditional fuel cards come with high transaction fees and fraud risks. AtoB has developed a modern fuel card system that offers:

 

  • Lower transaction costs
  • Enhanced fraud prevention
  • Integration with digital payment systems

 

This approach not only reduces expenses but also provides small businesses with better control over their spending.

 

  • Streamlining Payroll

AtoB addresses the unique payroll challenges in trucking, where drivers are often paid by the mile rather than hourly or salaried. By digitizing payroll systems, AtoB ensures drivers are paid faster and more reliably. This eliminates the reliance on paper checks and payday loans, improving financial security for drivers.

 

  • Improving Cash Flow with Faster Payments

Traditionally, trucking companies have faced delays in receiving payments from freight brokerages, creating cash flow gaps. AtoB’s platform accelerates payments, allowing businesses to access revenue more quickly. Cash flow improvements reduce the need for costly short-term financing and enable companies to reinvest in growth.

 

Empowering Small Businesses in Rural America

One of AtoB’s core missions is to level the playing field for small trucking businesses, particularly those in rural areas. Vignan emphasizes that these businesses often need more access to the resources and tools available to larger corporations. By providing a seamless financial interface, AtoB empowers small businesses to:

 

  • Reduce operational costs
  • Increase profitability
  • Expand their operations

 

This focus on small businesses aligns with Vignan’s vision of fostering economic growth and job creation in a decentralized, essential industry.

 

Insights from the Field: Building Solutions with Truck Drivers

Vignan and his team didn’t develop AtoB’s platform in isolation—they spent time at truck stops across California, talking to drivers and small business owners to understand their pain points. What they found was striking:

 

  • Drivers often endure long hours on the road yet face delays in receiving their paychecks.
  • Many businesses rely on outdated systems because modern financial tools aren’t tailored to trucking’s unique needs.
  • The lack of digital solutions creates inefficiencies that ultimately hurt drivers and business owners.

 

This hands-on research informed AtoB’s approach, ensuring the platform addresses real-world challenges.

We are making sure that the hardworking unsung heroes of the industry get paid fastest and not have to take a payday loan again.” Vignan Velivela Co-Founder and CEO, AtoB

 

The Broader Impact: A Vision for the Future

AtoB’s innovations are not just about improving individual businesses but transforming the entire trucking ecosystem. Vignan envisions a future where:

 

  • Financial systems in trucking are as reliable and efficient as those in retail or e-commerce.
  • Small businesses have the tools to compete with larger players, driving economic growth.
  • Truck drivers are paid fairly and on time, without the need for predatory payday loans.

 

AtoB is laying the groundwork for long-term change in the industry by addressing these issues.

 

Lessons for Vertical SaaS Companies

AtoB’s journey offers valuable insights for other vertical SaaS companies looking to disrupt traditional industries:

 

  1. Customer Discovery Is Key: Spending time with end users—truck drivers or small business owners—provides critical insights that shape better products.
  2. Focus on Specific Pain Points: AtoB targeted the trucking industry’s biggest costs—fuel and Payroll—before expanding to other areas.
  3. Unlock New Opportunities: By modernizing financial systems, AtoB not only solves existing problems but also creates opportunities for growth and innovation.

 

Building a Customer-Centric Business Model

AtoB’s approach to innovation is grounded in customer-focused principles inspired by companies like Amazon. Vignan points to Amazon’s dual emphasis on cost reduction and speed as the foundation for its lasting success. Similarly, AtoB prioritizes reducing costs for trucking businesses—through lower fuel expenses or more affordable working capital—while speeding up processes such as payments and Payroll.

 

Reducing Costs and Improving Speed

AtoB introduced 24/7 payment systems to ensure drivers and businesses can receive funds instantly, eliminating the need for paper checks and payday loans. Vignan highlights how this is becoming the standard in trucking, much like how gig economy platforms like Uber have revolutionized payments for their workers.

 

This dual focus on cost and speed extends beyond immediate transactions. AtoB has systematically built its product roadmap by addressing the trucking industry’s highest expenses:

 

  1. Fuel Cards: The first step was modernizing fuel payments, trucking companies’ most significant cost category.
  2. Payroll Solutions: Next came streamlined payroll systems, solving inefficiencies and ensuring drivers are paid faster.
  3. Working Capital Management: By accelerating trucking companies’ payment cycles, AtoB reduces reliance on high-interest loans to cover operational expenses.

 

These solutions are practical and transformational, helping small businesses grow sustainably in a competitive industry.

“Customers care about speed. And the faster we do deliver, the more reward the customer will give us.” Vignan Velivela Co-Founder and CEO, AtoB

 

Lessons in Product Strategy for Vertical SaaS Companies

Vignan shares invaluable insights for startups building solutions for niche industries. AtoB’s success stems from meticulous customer research and a disciplined approach to product development.

 

  • Customer Discovery and Validation

Before building their first product, AtoB’s team talked extensively to trucking company owners and drivers, challenging their assumptions about the industry. These assumptions included exploring why existing solutions, like small business credit cards, weren’t being adopted. The discovery process revealed key differences in trucking’s payment and billing systems, leading AtoB to focus on creating a purpose-built fuel card.

 

  • Iterative Product Development

AtoB only attempted to address some problems at a time. Instead, the team identified their customers’ most pressing needs and tackled them in order of priority. By starting with the fuel card and expanding to Payroll and payments, they built trust and created a strong foundation for scaling their platform.

 

  • Adaptation and Contextualization

While AtoB drew inspiration from e-commerce payment systems like Stripe and Shopify, they recognized that trucking has unique workflows and constraints. For example, trucking companies operate on net-30 or net-45 payment terms, requiring tailored solutions that account for industry-specific billing and taxation standards.

 

This ability to adapt lessons from other industries while tailoring them to trucking has been a cornerstone of AtoB’s strategy.

 

Enabling Faster Payments and Reducing Working Capital Costs

AtoB has transformed how trucking companies manage cash flow by partnering with intermediaries such as freight brokerages and factoring companies. Instead of forcing small businesses to adopt new practices, AtoB directly integrates its faster payment solutions into these existing workflows.

 

For example, trucking companies previously waited 30 to 45 days to receive payment after delivering a load. During this time, they often relied on expensive short-term loans to cover operating costs. AtoB eliminates these delays by enabling same-day payments, significantly reducing working capital costs and improving profitability for small businesses.

 

Preparing for the Transition to Electric Vehicles

The trucking industry is on the brink of a technological shift, with electric vehicles (EVs) expected to replace traditional diesel-powered fleets over the next few decades. Vignan believes this transition is inevitable, although long-haul trucking will likely adopt EVs more slowly than local fleets.

 

As a payments platform, AtoB remains fuel-agnostic. Whether customers use diesel, electricity, or alternative fuels like hydrogen or biofuels, AtoB supports their financial transactions. The platform’s open-loop network works seamlessly with gas and charging stations nationwide, ensuring continuity regardless of the energy source. This flexibility positions AtoB to support trucking businesses through the EV transition, helping them adapt without disruption.

 

Drawing Inspiration from History’s Great Innovators

When asked for advice to other startup founders, Vignan emphasizes the value of continuous learning. He recommends studying the strategies of influential founders—both from recent history and the industrial age—to understand how they tackled challenges and built lasting businesses.

 

Vignan points to industry leaders like Rockefeller and Henry Ford, who deeply understood their markets and used that knowledge to drive innovation. Similarly, AtoB’s team has invested significant time in learning the nuances of the trucking industry, from payment standards to driver workflows, enabling them to create solutions that truly meet customer needs.

 

AtoB’s Role in Modernizing Trucking

AtoB’s journey exemplifies how technology can address longstanding inefficiencies in traditional industries. By focusing on customer needs, reducing costs, and introducing faster payment systems, AtoB is empowering small trucking businesses to thrive in a competitive and evolving market.

 

As the trucking industry embraces changes like electric vehicles, AtoB’s adaptable platform ensures that businesses can continue to operate efficiently, no matter the fuel source or financial challenge. Through its relentless focus on basics—cost, speed, and customer service—AtoB is laying the groundwork for a more sustainable and equitable future for trucking.

For other startups aiming to disrupt vertical markets, AtoB’s story offers valuable lessons in listening to customers, prioritizing product development, and adapting proven strategies to unique industry contexts.

 

By solving critical pain points, AtoB is not just transforming trucking—it’s setting a new standard for what vertical SaaS companies can achieve.

 

Listen to Bringing modern financial tools to America’s trucking industry with Vignan Velivela of AtoB, then learn more about Gusto Embedded.

Brian Busch Brian is currently Head of Marketing at Gusto Embedded; the only payroll API with 10 years of experience and actionable data behind it. Before joining Gusto, Brian held leadership positions at Cloud Elements, Kapost, and Captricity. He holds a BS in finance and a BA in philosophy from Boston College and an MBA from the Cal Berkeley Haas School of Business.
Back to top