Flexport in Talks to Acquire Convoy Tech
Flexport eyes the technology of recently shut down digital freight startup Convoy amidst its own struggles in the logistics sector.
Logistics giant Flexport is reportedly in talks to snag the tech behind Convoy, the Seattle freight startup that went belly up two weeks ago.
- Flexport intends to employ a fraction of Convoy's team. However, it won't absorb any assets or liabilities.
- The halt in Convoy's operations is still fresh, having only been 18 months since they secured $260 million, boasting a valuation of $3.8 billion.
- Flexport isn't sailing smoothly either. They've faced layoffs, with a 20% workforce reduction this month and another 20% cut earlier in January.
Convoy: Before shutting down, they spent four months hunting for a potential buyer. Unfortunately, they didn't seal the deal. Convoy's recent woes also include facing a lawsuit for allegedly violating the WARN Act.
Flexport: Originating from San Francisco in 2013, this logistics startup provides a multitude of services, from ocean and air freight to financing and insurance. Despite past successes, including raising $1 billion in 2019, the company's faced its share of hardships. A notable mention is the departure of ex-Amazon exec, Dave Clark, from the CEO position last month.