Flexport, a logistics technology provider, is investing in the software it acquired from Convoy, a failed digital freight matching firm, last year. The company announced on Monday that it is expanding the Convoy Platform for brokers. This launch will provide brokers with access to thousands of reliable carriers across the country, making freight execution easier and reducing operating costs for both brokers and carriers.
Flexport, headquartered in San Francisco, aims to simplify global trade by connecting everyone in the supply chain. The company purchased Convoy’s technology stack after the Seattle-based startup closed its doors following eight years of operations and significant venture capital funding. It was speculated that Convoy had succumbed to the challenges of a post-pandemic freight recession in the U.S. trucking markets and rising interest rates on its loans.
When Flexport acquired Convoy’s technology, it was seen as a step toward creating a “one-stop shop” for clients’ logistics needs. The recent expansion of the Convoy Platform demonstrates Flexport’s commitment to this goal. According to Bill Driegert, Flexport’s EVP and Head of Trucking, the U.S. trucking market has transformed significantly since the pandemic, with technology empowering small carriers to manage their businesses through mobile devices. This move is expected to simplify operations for brokers, reduce costs, and create new opportunities for small carriers, enabling growth and enhancing efficiency in the trucking ecosystem.