Trucking Recession Deepens As Bezos, Gates-Backed Convoy Cancels All Shipments, Load Board Is Empty
A change is brewing in the next day or two at Seattle-based digital brokerage Convoy, with reports Wednesday of all loads being canceled.
John Kingston,
FreightWaves
Convoy's digital brokerage in Seattle is about to undergo a major change, according to reports released on Wednesday.
All loads are being cancelled.
FreightWaves obtained a communication from Convoy to its customers that stated the company was 'taking the necessary steps to prepare Convoy for a business transition. We will have more information on this in the next 48-hours.
Convoy's message said that the company was unable to 'answer additional questions' at this time.
A spokeswoman for Convoy issued a short statement to FreightWaves. She also mentioned potential developments within the next 24-48 hours without providing any further details.
According to the communication, "all shipments were canceled from our Marketplace." Convoy stated that shippers can 'choose directly to work with carriers who were booked for canceled shipments.' It provided an email address.
Customers can use this if they need additional support.
FreightWaves confirmed that on Wednesday, the Convoy loading board was blank.
According to FreightWaves, despite the market being filled with rumors about bankruptcy on Wednesday morning - not surprising since all loads were cancelled in a single go - there was no filing of bankruptcy by Convoy.
Convoy's value in April 2022 was $3.8 billion.
An investment of $260,000,000 in a Series E Capital Raising.
Hercules Capital Inc. invested $100 million of venture debt and Baillie Gifford, T. Rowe Price. Also, Jeff Bezos and Bill Gates have invested in the company, as well as Capital G, Greylock Y Combinator Fidelity, Greylock Capital, Greylock Capital, Greylock Capital, Greylock Capital, Greylock Capital, Greylock Capital, and Fidelity.
Convoy CEO Dan Lewis at a FreightWaves Event in Arkansas, 2022
It is not surprising that Convoy may be undergoing a major change. The current freight market is a difficult one for most brokerage firms, if not all. But Convoy in August is a big deal.
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Goldman Sachs is reportedly helping it explore options for future ownership and capitalization. Rumors have it that C.H. Robinson, Walmart, Amazon and Maersk are among the potential suitors who might buy or take a stake of Convoy. Robinson, Walmart Amazon, and Maersk are among the rumored suitors who might acquire or take a stake in Convoy.
Convoy has also experienced significant changes in recent months. Grant Goodalle was Convoy's chief experience officer and co-founder in June.
He left the company.
Convoy announced a restructuring in February. Convoy also made a number of unannounced layoffs.
This year, brokerages have been dominated by a theme.