As I understand it, the concept allows for smaller vehicles with frequent departures and arrivals. It makes some sense to send shipments of packages between delivery hubs often rather than waiting to fill a whole train enough to make it economical, while not being subject to a vehicle propelled by pressure in the tube.

I can't say whether it would be effective (or even beneficial enough to justify the construction cost) but it sounds more plausible than high speed mass transit for passengers.

Hyperloop is technically distinct from either of those.