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Parallel, an LA-based autonomous electric freight rail startup, raised a $100 million Series C, founder Matt Soule tells Axios Pro.

Why it matters: Self-driving freight trains could disrupt the rail industry in the same way autonomous trucks appear poised to do on the roads.

Follow the money: AVP, Hillspire, Agility Global, and Cobalt Capital participated, alongside existing investors Anthos Capital, Congruent Ventures, Riot Capital and Collaborative Fund.

How it works: Parallel's Panther rail vehicles allow railroads to handle shorter, lower-density routes without hooking up to traditional locomotives or other rail equipment.

What they're saying: "It's a cost reduction for the shippers, but it's also a congestion relief for the roadways and safety improvement for the public by having fewer trucks on the roadways," Soule, a former SpaceX engineer, tells Axios Pro.

The intrigue: Railroads would love to reduce labor costs. Unions view it as a threat to jobs. Lawmakers and regulators will invariably continue to have questions.

The tech seeks to take business from trucking, which handles nearly three-quarters of U.S. freight movements and dominates short hauls.

Flashback: Rail carriers have lobbied against requiring trains to have two-person crews, arguing there's a lack of evidence that they improve safety.

The Washington Post reported on a 2023 exchange between Sen. Sherrod Brown and CSX's then-CEO Joe Hinrichs, in which Brown asked Hinrichs how many pilots were on his plane to Washington, D.C.

Hinrichs reportedly laughed, then turned the question around, noting that trucks have only one driver.

Catch up quick: The Federal Rail Administration granted Parallel a waiver to operate over Genessee & Wyoming short-line tracks outside Georgia's Port of Savannah in early 2025.

The company raised a $38 million Series B in April 2025.

Parallel has raised $200 million since its launch in 2020. 

What's next: The technology has generated commercial interest among railroads in the U.S. and internationally, the company says. 

Case(s) in point: The company has announced a partnership with Agility Logistics in the Middle East, and Soule joined the Axios Pro interview from Berlin.

Autonomous freight rail startup Parallel raises $100M

Self-driving freight trains would disrupt the rail industry in the same way autonomous trucks appear increasingly poised to do on roads.

A white shipping container labeled Parallel rests on a rail chassis on railroad tracks, with scrubby bushes and distant green hills under a bright blue sky.

Intermodal shipping containers on Parallel's autonomous chassis. Courtesy of Parallel

Parallel, an LA-based autonomous electric freight rail startup, raised a $100 million Series C, founder Matt Soule tells Axios Pro.Why it matters: Self-driving freight trains could disrupt the rail industry in the same way autonomous trucks appear poised to do on the roads.

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Autonomous freight rail startup Parallel raises $100M

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