In October, the startup from Seattle abruptly announced its decision to put an end to its business and to all the digital transformation plans for the trucking industry the company had. Convoy closed its core business and dismissed most of its employers.
The CEO of the company, Dan Lewis, stated his regret with the decision in the memo shared with Convoy´s now-former employees. Lewis affirmed that the day they hoped would never arrive, finally did, and despite of all their efforts during the four months looking for any strategic solution to maintain the company in operation, it just wasn´t possible.
Convoy had to face big challenges in the transportation industry since the freight demand and the revenue per each truckload decreased and the competition has increased — a problem that affects the freight brokers in general at this moment. Since the number of trucks are abundant shippers have more attractive freight rates to choose from, especially from big companies that compete with smaller companies like Convoy.
Another thing happening is that shippers are starting to move their loads through their privates fleets, something that has a huge impact in the brokerage market. This, alongside the current deep recession in the trucking industry´s market has become the perfect storm for shutting down companies like Convoy.
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