Breaker19 is an Uber-like truck booking platform founded by two Houstonians. Photo via Getty Images

In a world where ”the customer is always right," two Houston founders have followed that rule right to their next venture.

Breaker19 — a groundbreaking mobile application built in late 2023 to be an efficient oilfield trucking and hotshot marketplace — was co-founded by Rodney Giles and Tyler Cherry. The native Houstonians also co-founded BidOut, a leading Oil & Gas procurement platform in 2021.

“About a year ago, one of our BidOut clients, a large operator, came to us and basically said that the biggest problem they have in the oil field is ordering trucks,” remembers Giles. “From there, they asked would we be willing to build something similar to Uber, but for oilfield logistics and trucking? So, we built Breaker19.”

After their customer presented a challenge, Giles and Cherry got to work. They envisioned the technical architecture almost immediately and assembled a team of software engineers to build an in-house application in less than a year.

“We launched Breaker19 in November 2023, and my goodness, it has taken off like crazy,” says Giles. “It is growing incredibly fast. We’re doing hundreds of truckloads a day now, all throughout West Texas, South Texas, North Dakota, really all over the U.S.”

Now, armed with such large publicly traded companies as British Petroleum, Breakout19 has a network of more than 1,500 trucks similar to transportation companies like Uber, where drivers make themselves available to be dispatched according to their health, safety and environmental requirements.

Breaker19 is doing so well, in fact, that it’s sped past Giles and Cherry’s original collaboration, BidOut.

“Breaker 19's probably, you know, growing ten times of where BidOut even was in its early days,” says Giles. “So, we'll always explore options that make sense for our shareholders. Fortunately, my co-founder and I have previous companies that we built and sold and have experience in scaling and have experiences in multiple departments, whether it be finance or sales or marketing or operations.

“So, currently, we do operate BidOut and Breaker19 separately, but they are, you know, through common operating structures. And, you know, we're able to maintain the scale and maintain the growth right now. And right now, the company is doing great financially and has cash flow positives. So, for us, you know, our goal is just to continue. I feel like we've kind of solved an archaic problem and did it in a really simple way, and it's working out pretty well.”

And it all started with a simple question from a customer — "Hey, can you guys come up with something like this?"

“It all came together just by listening to our customer’s needs,” says Giles. “And we always try to go into our clients and help them with a lot of what they do. But we always want to know about what their other pain points are. You know, there's still people, you know, that are operating with very archaic processes, very, you know, manual back-office processes. And our job is to speed them up with software. And so Breaker19 was able to do that.”

Practically speaking, Breaker19 is more than a software solution. It also closes the gap between qualified drivers and end clients by vetting participants for the platform in an efficient and pragmatic fashion.

“We have a very rigorous vetting process for the drivers,” Giles explains. “I mean, that's really what makes the oil and gas trucking industry so unique. Insurance requirements have to be significantly higher than most carriers. They have to go through very well-funded safety trainings where they are familiar with the oil field. And then number three, these drivers have to have personal protective equipment. They have to have flame-retardant clothing, they have to have slo-mo boots and they have to have hard hats.”

Procedure is important, but professionalism is equally important to Breaker19.

“You know, we do not allow the carrier to show up on a customer's locations in shorts and flip-flops or Crocs and, you know, be protected,” says Giles. “And so, for what we're dealing with is very mission critical, but also very, you know, very high-risk.

“For example, we are checking insurance statuses four times a day. If a carrier were to cancel their insurance, we're aware of it immediately because we want to make sure that we always have active insurance in place. So, we have a process that these carriers go through. Again, we've got over 1,500 of them now that are well-vetted and well-qualified.”

As Breaker19 continues to scale, Giles and Cherry hope their burgeoning app becomes the go-to ordering platform for the entire oil and gas industry for all of their trucking, hot shot and transportation needs.

“We're bringing on some significant, large enterprise clients right now that make up 10% of the U.S. market share for each customer,” says Giles “So I think when we start to compound those, I think we easily see the trajectory there as really being something that's taking off pretty fast. So, I think at the end of the day, we just hope to keep delivering a great experience for our clients, make their ordering process easy.”

With both BidOut and Breaker19 doing great financially, proud Klein Oak High School alums Giles and Cherry have purchased a steer to support Texas youth and agricultural causes. Additionally, moving forward, the duo pledges to give away a full steer each month to a customer of their Breaker19 platform.

"We are passionate about giving back to our community and nurturing the next generation of leaders in Texas," says Cherry. "Having personally experienced the transformative impact of FFA, we saw this initiative as a meaningful way to both support local agriculture and provide our clients with a taste of authentic Texas beef.”

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Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”