Flexport Launches Convoy Platform, Brings Back Digital Freight App

After buying the technology of failed digital-freight startup Convoy last November, Flexport has resurrected Convoy's tech with the launch of the Convoy Platform.

The move, Flexport says, provides a technology platform that offers global shippers (its customers) access to a trucking capacity marketplace of small carriers and owner-operators. Carriers can once again use the Convoy app to find, bid on, and haul loads from brokers.

Convoy, one of the early “Uber for Freight” tech brokerage startups, closed its doors on its digital freight network last fall, a casualty of the freight recession and capital investors pulling back on tech startups.

While Flexport and Convoy are both among companies that are working to use digital platforms to make logistics more efficient, Convoy operated more as a digital broker, where Flexport is more of a freight forwarder, using a technology platform for global logistics.

What the Flexport-Convoy Connection Means for Logistics

By buying the Convoy tech, Flexport is able to offer a larger range of trucking services to its freight-forwarding customers.

The launch marked the first milestone since Flexport acquired Convoy, Inc.'s technology and intellectual property in November 2023, according to the company’s announcement. (Flexport did not buy Convoy’s overall business or its liabilities, including physical assets such as real estate or trailers.)

Flexport has had its own struggles with the drop in freight demand. Last month it announced it had received a $260 million investment from e-commerce provider Shopify, but according to the Wall Street Journal in a Jan. 26 report, Flexport was planning to cut nearly 20% of its staff, or about 500 people. The San-Francisco-based company previously cut 20% of its staff last October in areas such as software development.

What the Flexport-Convoy News Means for Carriers and Owner-Operators

Motor carriers ad owner-operators will have 24/7 access to the load board in the Convoy app, where they can book loads at the listed rate or have the option to bid. Carriers can request hassle-free detention and lumper fees, track their fleet, and manage their load paperwork, all with a few taps in the app, according to the Flexport announcement. The Convoy app also facilitates same-day and next-day QuickPay options.

Flexport plans to expand the offerings of the Convoy Platform for brokers in the second quarter. Brokers will have access to high-quality capacity backed by fraud detection technology and automated predictive performance scoring and quality control.

"Shippers, carriers, and brokers need innovative technology solutions to provide them the flexibility, reliability, and operational efficiency to manage through this often challenging and ever-changing market. We're thrilled to restore this transformative trucking technology to the industry," said Flexport EVP and Head of Trucking, Bill Driegert.

"The Convoy Platform will provide an effortless, fully integrated experience for shippers and brokers while offering easy access and execution of freight to thousands of owner-operators and small carriers.”