Algorhythm Holdings (NASDAQ:RIME) stock fell Tuesday as the company sought to steady investor sentiment following volatility tied to its SemiCab platform and broader weakness in the freight trucking industry.
Last Friday, Algorhythm’s AI-driven SemiCab platform rattled the sector, triggering a sharp selloff that erased an estimated $17.4 billion in combined market value.
Freight operators, including C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) and Landstar System Inc. (NASDAQ:LSTR), dropped as much as 16% after a company claimed its technology could handle 300% to 400% more freight volume without adding staff.
CEO Emphasizes Collaboration Over Disruption
On Tuesday, Chief Executive Officer Gary Atkinson sought to clarify the company’s positioning, describing SemiCab as a collaborative solution rather than a competitive threat.
“Truckload freight is a $3 trillion global market and the backbone of modern commerce. Yet the industry still operates largely without coordinated intelligence at network scale. When you apply AI across a system of that magnitude, the impact isn’t small, it’s monumental. Our goal is to work alongside the industry to make that coordination practical and repeatable every day,” Atkinson said.
He highlighted structural inefficiencies in the sector, noting that roughly 30% to 35% of freight miles are driven empty, increasing fuel costs, reducing driver productivity, and lowering equipment utilization. Those expenses, he said, are ultimately passed on to consumers.
White Paper Cites Efficiency Gains
According to a company white paper, SemiCab has delivered a 70% reduction in empty miles and throughput gains of 300% to 400% for customers, including Kellanova, Procter & Gamble India, and Asian Paints.
“We are not competing against freight companies, brokers, or shippers — they are our customers and our partners,” Atkinson added. “Our objective is to work collaboratively with them to unlock structural efficiencies through intelligent network coordination.”
Algorhythm said the platform’s traction could support enterprise growth, larger contracts, and geographic expansion into 2026.
RIME Price Action: Algorhythm Holdings shares were down 12.03% at $4.51 at the time of publication on Tuesday, according to Benzinga Pro data.
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