Skip to content
Search AI Powered

Latest Stories

newsworthy

Convoy lands $400 million funding to expand online truck brokerage

Digital freight network reduces empty miles, cuts detention times, firm says.

Online truck brokerage Convoy has landed a gaudy $400 million in venture capital funding, the company said today, hammering a stake into the ground of the fast-growing digital freight matching (DFM) sector and serving notice to rivals that it plans to keep expanding market share.

Seattle-based Convoy said it plans to use the hefty new bank account to accelerate its plan to eliminate operational waste in the trucking industry. According to Convoy, that approach will lead to lower costs and improved quality for shippers, increased earnings for truck drivers, and the reduction of pollution from miles driven without cargo.


The "Series D" funding round was led by Generation Investment Management and by funds and accounts advised by previous Convoy investor T. Rowe Price Associates Inc. Following previous funding rounds, the move brings Convoy's total capital raised to more than $668 million. Additional participation in this round came from Baillie Gifford, Fidelity Management and Research Co., Durable Capital Partners LP, and by returning "Series C" investors CapitalG and Lone Pine Capital.

Convoy says its digital freight network moves "tens of thousands of truckloads per week in the U.S." by automatically pricing and matching shipments with carriers. The platform continually improves that process by using machine learning algorithms to evaluate all shipments and carriers simultaneously and match the right job to the right truck, the firm said.

"Through its use of data science, Convoy is driving the next evolution in efficiency across the industry," Joy Tuffield, partner at Generation Investment Management, said in a release. "This is an exceptional opportunity to achieve a reduction in carbon emissions, while simultaneously increasing earnings for truck drivers and increasing service quality for shippers."

Convoy's new funding could spell trouble for traditional brokers that are already tracking the growth of digital platforms from Uber Freight and Transfix. However, the firm says the market is large enough to sustain both digital startups and the country's 15,000 traditional brokers.

"It is a giant industry, and it will be a very, very long time until it consolidates, so we just concentrate on our own technology development," Ziad Ismail, Convoy's chief product officer, said in a briefing. "There will be lots of brokers for a very long time; we don't spend a lot of energy in the company thinking about other brokers and what their plans are."

Convoy's "own technology development" is focused on eliminating waste, he said, citing statistics that 35% of truckers' miles are driven with empty vehicles, that the average waiting time for a trucker to pick up a load is 2.5 hours, and that the average waiting time to drop off a load is another 2.5 hours.

The company has unveiled a series of recent initiatives in pursuit of reducing that waste, including products like a free transportation management system (TMS) platform and an automated reloads function, as well as partnerships with TMS vendors and third party logistics providers (3PLs).

Ismail acknowledged that the U.S. freight sector has followed a turbulent track in recent months, but said applying technology to remove trucking industry waste can generate returns in any economic climate. "The company has been around for four years, so we've seen markets where hurricanes and [electronic logging devices] have come in and have driven rates up, and where a surplus of supply has driven rates down. Creating a more efficient model really matters in both markets," Ismail said.

Investors clearly agree, since Convoy continues to attract backing from a more star-studded array of partners than the typical freight-tech startup. The co-leader of the current found, Generation Investment Management, is led by former Vice President Al Gore, and other investors include former Microsoft Corp. found Bill Gates, Salesforce.com CEO Marc Benioff, eBay founder Pierre Omidyar, KKR CEO Henry Kravis, amazon.com Inc. founder Jeff Bezos, rock band U2 musicians Bono and The Edge; Dropbox CEO Drew Houston; former Starbucks President Howard Behar; cable television magnate Barry Diller; and former U.S. Senator Bill Bradley.

The Latest

More Stories

Trucking industry experiences record-high congestion costs

Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

Keep ReadingShow less

Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

Keep ReadingShow less
forklift driving through warehouse

Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

Keep ReadingShow less
map of truck routes in US

California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

Keep ReadingShow less
screenshots for starboard trade software

Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

Keep ReadingShow less