HOUSTON - Freight Technologies Inc. (NASDAQ:FRGT), known as Fr8Tech, announced today an expansion of its partnership with Amazon (NASDAQ:AMZN) Mexico, now encompassing U.S.-Mexico cross-border shipping operations through its Fr8App platform. This development comes as an extension to Fr8Tech's role during Amazon's high-demand season in Mexico, a collaboration that began in December 2023.
Fr8Tech's CEO, Javier Selgas, expressed pride in elevating the company's relationship with Amazon Mexico, stating that this move aligns with Fr8Tech's strategic goal to become a prominent logistics partner in North America. He emphasized the trust and confidence Amazon Mexico has in Fr8App's capabilities and the company's dedication to providing solutions to businesses of varying sizes.
The integration of cross-border logistics into Fr8App's services highlights the growing importance of efficient international supply chain operations within the USMCA region. Fr8App leverages artificial intelligence and machine learning to offer real-time logistics solutions, aiming to streamline the complexity of cross-border and domestic shipping.
Fr8Tech's investment in technology and infrastructure is geared towards enhancing service quality, a critical factor for meeting the logistical demands of major global entities like Amazon.
The company's digital freight marketplace, alongside tools for live pricing, real-time tracking, and transportation management, is designed to connect carriers and shippers, thereby increasing operational efficiency.
While Fr8Tech and Fr8App anticipate positive outcomes from this expansion, it is important to note that forward-looking statements involve risks and uncertainties that could cause actual results to differ.
These include potential economic and business factors, regulatory changes, and other risks outlined in Fr8Tech's filings with the U.S. Securities and Exchange Commission.
This latest initiative by Fr8Tech underscores its commitment to innovation in the logistics industry and its role in facilitating seamless cross-border trade within the North American market. The information in this article is based on a press release statement.
In other recent news, Freight Technologies, also known as Fr8Tech, has been facing potential Nasdaq delisting due to its shares trading below the $1.00 threshold for 30 consecutive business days.
The company now has a 180-day period to regain compliance. In the meantime, Fr8Tech has also been chosen by Solave, a key player in the Blue Agave market, to manage its cross-border logistics. The partnership aims to increase supply chain efficiency using Fr8Tech's advanced platform, Fr8App.
On the financial front, Fr8Tech reported a steady growth in its Q4 2023 revenue. The company announced a revenue of approximately $5 million for the quarter, marking a 7.5% increase from the previous quarter and a 16% rise from the same period in 2022. Additionally, the company's year-to-date gross margin improved to 9.3%.
These recent developments highlight Fr8Tech's ongoing efforts to navigate compliance challenges, foster strategic partnerships, and maintain a positive financial trajectory. The company remains optimistic about its prospects for 2024, focusing on innovation, client base expansion, and shareholder value.
InvestingPro Insights
Amidst Freight Technologies Inc.'s (NASDAQ:FRGT) announcement of expanding its partnership with Amazon Mexico, investors are closely monitoring the company's performance metrics and market position. Here are some key insights based on real-time data from InvestingPro:
InvestingPro Data indicates that analysts are anticipating sales growth for Fr8Tech in the current year, signaling potential for the company's expansion strategies to translate into increased revenue. Despite recent challenges, this expected sales growth aligns with Fr8Tech's strategic initiatives and its recent partnership developments.
Moreover, Fr8Tech's stock is currently trading near its 52-week low, according to InvestingPro Data. This could present an opportunity for investors considering the company's long-term growth prospects and its enhanced role with Amazon Mexico. Additionally, the company's RSI suggests that the stock is in oversold territory, which might attract investors looking for potential rebounds in the stock's value.
It is important to note that Fr8Tech's stock price has experienced significant volatility, a characteristic highlighted by InvestingPro Tips. While this may deter some investors, others may find the current valuation an entry point, especially considering the company's technological investments and its aim to become a significant player in the North American logistics sector.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available that provide further insights into Fr8Tech's financial health and market performance. To access these tips and enhance your investment strategy, visit https://www.investing.com/pro/FRGT and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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