Report Indicates Former Employees Intend to Purchase Convoy
Seattle’s once-prominent freight startup, Convoy, which announced its shutdown just a week ago, is reportedly on the market for sale. An ex-employee of Convoy has revealed knowledge of the ongoing transaction to The Seattle Times.
The specifics regarding the deal remain under wraps, but it’s anticipated to be concluded in the near future. This individual, who opted for anonymity given that the deal is still in progress, hinted that several former employees of Convoy are part of this purchase bid. However, the exact number of these participants is yet to be confirmed.
In recent news on October 24, the Washington state Employment Security Department reported that Convoy was in the process of laying off 533 of its workers due to its cessation. The fate of these layoffs in light of the potential sale is still uncertain.
Mere days before this news broke out, Convoy made public its decision to halt shipments, cease operations, and begin staff reductions.
Convoy Inc. occupies the 54th position on the Transport Topics Top 100 list, highlighting North America’s premier logistics firms.
Having secured significant financial support from renowned tech magnates including Jeff Bezos and Bill Gates, Convoy, however, seemed to have faced diminishing investor trust, especially with the current downturn in the freight sector.
Last week, a memo from CEO Dan Lewis pointed to the overarching decline in the industry as a factor contributing to Convoy’s rapid decline, diminishing the demand for its brokerage offerings.
Lewis, who co-founded Convoy in 2015 alongside Grant Goodale and has roots in Amazon, also insinuated that this industry’s downturn may have dissuaded potential buyers. He mentioned in recent LinkedIn remarks that two prospective sales of Convoy nearly reached finalization but ultimately unraveled.