Convoy launches new marketplace to help small trucking businesses compete with large carriers

Convoy launches new marketplace to help small trucking businesses compete with large carriers

5:09pm, 18th April, 2019
(Convoy Image) After years of development and testing, today launched a new marketplace that helps small trucking companies get access to potential business traditionally available to only large carriers. The Seattle startup, valued at more than $1 billion with investors such as Jeff Bezos and Bill Gates, develops technology to match truck drivers with shippers looking to move freight. It aims to disrupt a $800 billion U.S. trucking industry. Today the company officially Convoy Go, a “drop and hook” marketplace that lets any carrier haul pre-loaded trailers which represent the majority of Fortune 500 company shipments. About 90 percent of U.S. trucking companies operate six or fewer trucks, according to Convoy, but they typically don’t have enough capital to invest in a trailer pool network across the country to access the pre-loaded trailers. As a result, only large carriers are able to handle those orders. Here’s how Convoy CEO Dan Lewis explained Convoy Go to today: “If a company is shipping a truckload of shampoo, they have two options. The first is, they can hire a truck that rolls in with its own trailer. The trailer is empty, so the truck has to wait for an appointment time. It then pulls up to the dock and gets loaded. It might be 2-to-3 hours before that truck can leave. With Convoy Go, they can pre-load the trailer with the shampoo. So the trucks rolls in, hooks into that trailer and drives away. It’s super efficient. That wasn’t ever available to these small trucking companies ever. Before, you had to have the capital to buy and position all these large trailer pools at different facilities around the country. With Convoy Go, we actually have a universal trailer pool and we’re making it available to any trucking company, even a one-truck owner-operator, so they can get all the same benefits, and more shippers and more trucking companies can participate in this super efficient model. It actually saves a lot of time, waste, and energy.” Convoy said Convoy Go can increase carrier productivity by up to 50 percent. In its blog post, Convoy said that “up to a third of the cost of truck freight in the U.S. is attributable to time spent either waiting for appointments, or waiting at the dock to load and unload. This massive amount of waste has a direct impact on increased transportation costs, decreased drivers’ earnings and reduced overall trucking capacity for shippers.” Convoy launched just three years ago and has already raised $265 million, including a giant this past September led by Google’s VC arm that propelled the startup to unicorn status. The investment is a finalist in the at the . The Seattle startup has competition in the form of traditional brokers such as publicly-traded giant , while freight operators themselves are to keep up with demand. There are also newer direct competitors including ; ; ; ; and others. Uber called out Convoy as a competitor to Uber Freight . Other Convoy investors Expedia Chairman Barry Diller, Salesforce CEO Marc Benioff, Code.org founders Hadi and Ali Partovi, and former Starbucks president Howard Behar.
U2’s Bono and The Edge revealed as investors in Convoy on-demand trucking tech startup

U2’s Bono and The Edge revealed as investors in Convoy on-demand trucking tech startup

6:00am, 8th May, 2018
U2’s Bono and The Edge in concert Friday night on the 2018 Experience + Innocence Tourin St. Louis. (Photo by Remy, via , ) Seattle-based on-demand trucking technology startup Convoy already counts several rock stars of the tech world among its investors — including Microsoft co-founder Bill Gates, LinkedIn co-founder Reid Hoffman, Salesforce CEO Marc Benioff and Amazon CEO Jeff Bezos. Turns out some actual rock stars have invested, as well. Convoy that U2’s Bono and The Edge quietly invested in the company last year. Convoy declined to disclose the amount of the investment. The U2 frontman and guitarist were introduced to the company by Hadi Partovi, a Convoy board member, investor and CEO of Code.org. The news coincides with the recent start of U2’s “Bono and The Edge know more about trucking than you might think. They’ve spent most of their adult lives touring the world with U2, and trucks are an essential part of moving the show from city to city,” said Convoy CEO and co-founder Dan Lewis in . “When they heard about Convoy, they loved that we are using technology to empower millions of truckers to grow their businesses while at the same time reducing empty miles and waste.” Convoy co-founders Dan Lewis, CEO, and Grant Goodale, CTO, inside the company’s Seattle headquarters. (GeekWire Photo / Taylor Soper) The company has been described as the “Uber for trucking,” using technology to connect truck drivers with excess capacity to shippers looking to move freight — including Fortune 500 companies — automating traditionally a slow and time-intensive process. Convoy works with 15,000 trucking companies and 100,000 truck drivers, and has grown to 225 employees. Bono and The Edge are no strangers to technology investing, from to cloud storage giant Dropbox. Partovi and his brother, Ali, who met Bono and The Edge through their previous startup iLike, also , as well. Convoy raised $62 million in a Series B round last year, led by , the investment arm of Silicon Valley-based accelerator Y Combinator. The investment by Bono and The Edge was not part of that round. Total funding in the company now tops $80 million. Convoy was named and is , set for Thursday night in Seattle.