Lithuanian startup Traxlo has raised €1.6 million (US$1.8 million) in funding from various investors, including Coinvest Capital, Bad Ideas Fund, Plug and Play, NGL, DEPO Ventures, and existing supporters like Iron Wolf Capital and Antler.

The funds will support the expansion of its task-based labor platform in Central and Eastern Europe, with upcoming launches in the Czech Republic and Romania.

Traxlo enables businesses to pay for individual physical tasks rather than relying on shift-based or temporary labor.

The platform, which has handled over 300,000 tasks for major firms like REWE Group and Zabka, will integrate AI tools such as large language models and computer vision.

Traxlo addresses labor shortages in retail and logistics while offering flexible income options and plans to add more automation features.

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🔗 Source: Traxlo

🧠 Food for thought

1️⃣ Task-based labor models bridge the gap in Europe’s shifting workforce landscape

Traxlo’s approach addresses a critical demographic challenge facing Europe, where 60% of people live in countries with stagnant or shrinking workforces due to aging populations and declining birth rates 1.

This labor shortage is particularly acute in retail and logistics sectors, explaining why Traxlo has already secured collaborations with 60% of Europe’s largest commerce players despite being a relatively young startup.

The model of standardizing physical work into discrete, verifiable tasks offers a solution to the flexibility demands of modern workers, with millennials increasingly seeking multiple career paths rather than traditional employment 1.

The timing is strategic, as the gig economy is projected to reach $2.145 trillion by 2033, driven by digital labor platforms that offer both flexibility and low entry barriers 2.

By focusing on physical labor that remains essential despite AI advancement, Traxlo is positioning itself in a sector less vulnerable to the automation wave that McKinsey predicts will displace approximately 12 million workers in Europe and the U.S 3.

2️⃣ AI’s reshaping of work creates complementary opportunities in standardized physical labor

While AI is projected to displace 85 million jobs globally by 2025, research indicates it will simultaneously create 97 million new roles, resulting in a net positive of 12 million jobs 4.

Traxlo’s business model aligns with this transition by creating a standardized infrastructure for physical tasks that complement rather than compete with AI advancements.

The company’s approach mirrors broader industry trends where 86% of employers anticipate significant transformation from AI and information processing technologies by 2030 5.

Recent data indicates workers with AI-complementary skills earn 56% more than their counterparts, suggesting platforms that effectively bridge AI capabilities with human labor could capture significant value 6.

This positions Traxlo’s “labor infrastructure for the age of AI” as part of a broader economic restructuring where human-AI hybrid teams become the norm, with organizations increasingly relying on both for efficiency and productivity 4.

3️⃣ Evolution from traditional gig work to verified outcome-based labor marks a market maturation

Traxlo represents an evolution beyond first-generation gig platforms by selling verified outcomes rather than time-based labor, addressing a key limitation in earlier models.

This shift from selling “shift hours” to “outcome-priced tasks” aligns with growing corporate emphasis on efficiency metrics, which McKinsey identifies as critical for success in future work environments 3.

The company’s growth from its €1.1 million pre-seed round in 2023 7 to this €1.6 million round demonstrates investor confidence in outcome-based labor models over traditional gig work approaches.

With one-third of American “side hustlers” believing they’ll always need secondary income due to rising living costs 2, Traxlo’s flexible task model meets a persistent market need while offering businesses more accountability than traditional gig platforms.

By standardizing physical tasks that can be teachable in minutes, Traxlo is creating a scalable system that potentially addresses both worker flexibility demands and business efficiency requirements—a balance earlier gig platforms struggled to achieve.

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