Flexport is the latest company that’s in talks to buy Convoy’s technology stack, according to a person familiar with ongoing conversations.
Flexport, a San Francisco-based freight forwarding startup, is in talks to purchase the technology assets of Convoy, a Seattle-based truck brokerage startup that shut down last week, the source told FreightWaves on Friday.
The freight forwarding company would hire a small team of Convoy employees. It’s presently unclear how much of the technology stack Flexport would acquire, but the person familiar with the matter said the company would not acquire any of Convoy’s physical assets, such as its trailer pool.
The Wall Street Journal previously reported that, if the deal went through, Flexport “would plan to restore Convoy’s trucking services for as many customers and partners as possible.”
Specifics of the financing are unclear, but the source told FreightWaves that the deal would be “favorable” to Flexport.
The Seattle Times reported on Tuesday that Convoy had found a buyer, but the source declined to reveal who the buyer was. The Wall Street Journal first reported that Flexport was in discussions to buy Convoy on Friday.
FreightWaves reported last week that two large incumbent freight companies were considering buying Convoy’s tech stack.
Convoy declined to comment on the potential Flexport deal. On Wednesday, Convoy co-founder Dan Lewis confirmed in a LinkedIn post that he was “working on a deal” in which some Convoy team members and some of the company’s technology and operations could be acquired. That lines up with what the source said Flexport was interested in acquiring.
Convoy and Flexport have had a partnership since at least 2021. Flexport customers, through its Convoy integration, were able to gain broader access to domestic truck transportation and gain a more holistic view of their shipping costs.
Meanwhile, Flexport itself has had a tumultuous autumn. The freight forwarder’s board fired then-CEO Dave Clark in September. Following that, Flexport founder Ryan Petersen, who stepped back into the CEO role, cleaned house, letting go of many Clark hires. The Information reported on Sept. 14 that Flexport’s revenue dropped 70% in the first half of 2023.
This is a developing story. Check back here for details.
Got some information on Convoy? Reach out to rpremack@www.freightwaves.com with any insight.
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