Flexport sells former freight unicorn Convoy’s tech 2 years after buying it

Flexport Sells Convoy Platform for “Massive Return on Investment”

Two years ago, logistics company Flexport made a strategic move by acquiring the assets of Convoy, a former freight tech unicorn that had ceased operations. Now, Flexport has sold off the platform, reaping a significant return on its initial investment.

Announced on Monday, Flexport confirmed the sale to DAT Freight & Analytics, although specific terms of the deal were not disclosed.

Flexport’s founder and CEO, Ryan Petersen, highlighted the success of the revamped Convoy platform, stating, “Over the past 18 months, we rebuilt and relaunched the platform as a neutral digital freight execution layer catering to brokers, carriers, and shippers across the market. This strategic investment has paid off, making the platform stronger, more widely utilized, and significantly more valuable than when we first acquired it. Recognizing the full potential of the Convoy Platform, it was evident that it needed to operate as a neutral infrastructure layer.”

Petersen emphasized that the sale of Convoy’s technology will enable Flexport to refocus its resources on its core business of facilitating global freight movement for its customers.

The divestiture of the Convoy platform follows Flexport’s recent announcement of a suite of AI-powered tools and a commitment to launching new products for its clients biannually, drawing inspiration from Airbnb CEO Brian Chesky. The company plans to unveil its next wave of products in late summer.