Flexport Acquires Convoy's Tech - Freight Unicorn Assets Sold

Flexport Divests Convoy Assets, Realizing Significant Gains

Flexport, a prominent logistics provider, has completed the sale of assets acquired from Convoy, a previously highly-valued freight technology company that ceased operations two years prior.

The transaction, finalized with DAT Freight & Analytics on Monday, is reported to have generated a substantial return on investment for Flexport, though specific financial details were not revealed.

Revitalizing the Convoy Platform

According to Flexport founder and CEO Ryan Petersen, the company undertook a significant effort to rebuild and relaunch the Convoy platform.

This involved transforming it into a neutral digital layer designed to facilitate freight execution for brokers, carriers, and shippers throughout the industry.

Petersen stated that this investment proved successful, resulting in a platform that is now more robust, widely adopted, and considerably more valuable than at the time of acquisition.

He further explained that the Convoy Platform’s continued development highlighted the necessity for it to operate as an independent infrastructure layer to fully realize its capabilities.

Strategic Shift for Flexport

The divestiture of Convoy’s technology will enable Flexport to concentrate its resources and efforts on its primary business.

This core business focuses on assisting clients with the global movement of freight.

Focus on AI and Product Innovation

This sale follows closely on the heels of Flexport’s announcement regarding a new suite of AI-powered tools.

The company also unveiled a plan to introduce new products for its customer base on a semi-annual basis, mirroring a strategy employed by Airbnb CEO Brian Chesky.

Flexport previously indicated to TechCrunch that the next product release is anticipated in “late summer.”

The company is prioritizing innovation and leveraging artificial intelligence to enhance its service offerings.