NY, 2nd November 2023: Flexport, a venture-funded freight forwarder, made an announcement on Wednesday regarding its acquisition of Convoy’s technology stack. According to a report by FreightWaves last week, the two freight startups were in talks discussing this acquisition, as Convoy, a freight brokerage, had recently shut down on October 19.
In an email sent to Flexport’s team on Wednesday afternoon, Ryan Petersen, the CEO and founder of Flexport, stated that their strategy would be to provide a comprehensive range of trucking services to customers who consider them a one-stop-shop for global logistics. He added that thanks to this deal, they are now in an excellent position to fulfill their product vision as a true one-stop-shop, capable of shipping any product, in any quantity, between any two places worldwide.
At present, the terms of the agreement remain undisclosed. Petersen’s email mentioned that only a small number of Convoy employees would be joining Flexport, clarifying that they are not taking on Convoy as a company or its liabilities.
Petersen also informed that Flexport customers would be able to access Convoy’s trucking network once again in the coming weeks. He stated that Flexport customers have already been utilizing Convoy’s network since at least 2021 and highlighted the significant numbers involved, such as more than 400,000 truck drivers and 80,000 carriers, as mentioned in his email.
Convoy officially ceased its operations on October 19, less than two years after being valued at $3.8 billion in its final funding round. Dan Lewis, Convoy’s former CEO and co-founder, declined to comment on the matter.