Logistics technology provider Flexport is continuing to invest in the software it acquired last year from the failed digital freight matching (DFM) firm Convoy, saying on Monday that it is expanding the Convoy Platform for brokers.
San Francisco-based Flexport said the launch gives brokers access to thousands of reliable carriers across the country, simplifying freight execution and lowering operating costs for brokers and carriers alike.
Flexport, which says its platform simplifies global trade by connecting everyone in the supply chain, bought up Convoy’s technology stack—but not the remnants of the corporation—after the Seattle-based startup was forced to shut its doors after eight years of operations and hundreds of millions of dollars in venture capital backing.
Conventional wisdom said that the tech upstart had fallen prey to a post-pandemic freight recession in U.S. trucking markets—a bear market which continues to this day—as well as fast-rising interest rates on its loan payments as the U.S. Federal Reserve Bank moved quickly to fight inflation.
At the time, Flexport said that buying Convoy’s technology would allow the company to take another step toward its goal of making Flexport a “one-stop shop” for all its clients’ logistics needs. This week’s move marks a strong step toward that goal, company leaders said.
"The U.S. trucking market has undergone a massive transformation since the pandemic. Technology has empowered a new wave of small carriers who manage their business through their phone. We see a tremendous opportunity to connect that capacity to brokers, simplifying operations and lowering costs, while expanding opportunities for small carriers," Bill Driegert, Flexport’s EVP and Head of Trucking, said in a release. "With today's launch, brokers using the Convoy Platform will be able to level up their operations and focus on strengthening core customer relationships and growing their businesses. At Flexport, we believe that technology plays a crucial role in empowering the entire trucking ecosystem; carriers, brokers, and shippers need new solutions to adapt and thrive in an ever-changing market."
