šŸŽ£ How Automation Can Silently Destroy Margin

"I think some TMS's are failing because they don’t understand what brokers do every day."

šŸŽ£ How Automation Can Silently Destroy Margin

Jonathan Salama went from living in France to working in freight tech at Microsoft to becoming the Co-Founder & CEO of Transfix.io, a platform helping freight brokers and 3PLs win more freight, grow profitability, bid faster, and automate workflows – powered by AI.

He breaks down the hard truth about automation, why he thinks building a TMS today might be a losing game, and where he thinks the industry is heading.


Today's Newsletter is Brought To You By Convoy Platform.

AI, Margin Pressure, and the Consolidation of Freight Tech

From France to Freight Tech 

Jonathan was born and raised in France before moving to the U.S. to study Computer Engineering at the University of Miami.

His early career followed a classic tech path: an internship at Microsoft, followed by a software engineering role at Gilt Groupe in New York, and later a position at a startup in California in 2012.

That startup eventually shut down, but it was there that Jonathan realized that he wanted to start something of his own. 

After several attempts to start his own venture, he realized that you need three things to make sense:

  1. Domain expertise
  2. A massive TAM 
  3. And a pain point that matters in the long run

Building ā€œUber for Truckingā€ (Before It Was Cool)

In 2013, Jonathan co-founded Transfix, which he called ā€˜Uber for trucking’.

Like for most startups, ā€œit took a lot of no’s to get a yes. A lot,ā€ he laughs.

But unlike others in the space:

  • They built their own TMS 
  • They started using AI as early as 2016

The Hard Truth About Automation

Jonathan says one of the most important lessons came from inside operations, not a boardroom:

ā€œAutomation should not compromise margin…. once you’re in the trenches and you tell your team you have to automate 90% of the appointments, and you realize that when you’re at 60%, when you move to 65%, the last 5 are terrible appointments and they’re costing you margin.ā€

At scale, even a 5% shift in ā€œbad automation outcomesā€ can wipe out the gains from everything else.

That became their edge. Not just automation — automation that improves margin.

They raised their seed round in 2014 and Series A in 2015 — early days for freight tech VC. But what made them unusual wasn’t timing.

They avoided massive funding rounds and instead:

  • Raised smaller checks
  • Extended runways in 1–2 year increments

This alone shaped the company more than any roadmap could.

The Breaking Point: Two Companies in One

The 2023 market crash forced a hard realization: Transfix wasn’t one business.

It was two.

They had two options: scale into a multi-billion-dollar brokerage or separate and focus. And that’s what they did.

ā€œI didn’t see a path where we could continue to invest how much we’re investing in tech by paying it with the brokerage side.ā€

In 2024, NFI Industries acquired Transfix’s freight brokerage operation, leaving them to strictly focus on the TMS. 

Why Building a TMS Today Is ā€œRidiculousā€

Jonathan is blunt about the current market:

ā€œI wouldn’t tell you to start a TMS today. That’s ridiculous.ā€

Not because the category is dead — but because it’s saturated, fast-moving, and increasingly commoditized.

What the Future Holds

Jonathan’s view of where the industry is heading?

ā€œI think the industry will consolidate… and only the vendors who can keep up are going to be left standing.ā€

Transfix didn’t succeed because it built software. It succeeded because it built software from inside operational pain — and refused to treat automation as a shortcut.

The lesson is simple, but not easy: in freight, efficiency without margin discipline is just expensive speed.

Listen to the full episode on Spotify and Apple Podcasts, or watch it on YouTube.


Presented by  Convoy Platform

Win the fight for quality capacity.

When capacity tightens, every minute counts. The Convoy Platform connects brokers with continuously vetted, reliable carriers to quickly secure the trucks you need—eliminating dead-end calls and giving you the edge in a competitive market.

You set the strategy that's right for your business—from pricing to carrier preferences—while our automated marketplace covers vetting, tracking, document management, payouts and more, freeing up your team to focus on delivering top-tier service and reliability that your customers demand.


Carrier of the Week (Presented by SearchCarriers.com)

Sindall Transport Inc

  • MC: 115078
  • Location: New Holland, PA
  • Equipment: Dry Van, Flatbed
  • Phone Number: (717) 354-0606

šŸŽ£The FreightCaviar Corner

We’re also dropping our original film, FREIGHT ALLEY, featuring the people who built what is now known as Freight Alley.

Out soon.


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