Convoy will use the $260 million in new capital to improve its digital trucker-for-hire platform.
Convoy's announcement comes as trucking rates have fallen dramatically from record highs.
According to data from Evercore ISI, on-demand trucking rates are just 1% higher year-over-year this week compared to 80% higher year-over-year in the first week of February. That shift is leading many trucking companies to reduce the capacity available on-demand, Convoy's core business, and shift to longer term contracts with customers, which can be less lucrative but more stable.
However, Lewis said that part of the new funding round will be used to continue diversifying Convoy's business, including Convoy Go, which provides trailers that customers can preload before drivers with trucks arrive to transport them to their final destinations. "Convoy is doing a lot of contracts right now as well." Lewis told CNBC."We have a really large trailer pool and we have a whole system now in our app that lets our carriers find dedicated work on consistent, dedicated lanes. We don't feel the competition. We're super focused on solving customer problems and, and less focused on the competition."
Seattle-based Convoy was founded in 2015 by Lewis and Grant Goodale, both former Amazon executives aiming to disrupt the analog and fragmented freight brokerage business, in which trucking companies are matched through customers via phone call and fax. Goodale serves at Convoy's carrier experience officer.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Digital Freight Service Convoy Hauls In $260 Million To Build Out Trucking PlatformThe funds will help the Seattle-based company build out its service as inflation and higher fuel prices push shippers and freight brokers to find more efficient ways to move goods.
Read more »
Ottawa convoy protest leader charged with perjury, obstruction of justicePat King has also retained a new lawyer to fight for his release and defend him against the mounting number of charges.
Read more »
Toyota and Mapbox say goodbye to dumb navigation, for high-quality on-demand mapsNext-generation, updatable on-demand navigation capabilities are on the market now, with more coming soon.
Read more »
Elon Musk's Tunnel-Making Venture Boring Company Hits $5.7 Billion ValuationThe Boring Company said it has raised $675 million in a funding round valuing the firm at $5.675 billion.
Read more »
KKR-Led Group Offers to Buy Australia’s Ramsay Health Care for Roughly $14.9 BillionA KKR-led consortium offered to buy Australian private-hospital operator Ramsay Health Care for roughly $14.9 billion, raising the private-equity firm’s bet on growing demand for healthcare.
Read more »
Digital Freight Service Convoy Hauls In $260 Million To Build Out Trucking PlatformThe funds will help the Seattle-based company build out its service as inflation and higher fuel prices push shippers and freight brokers to find more efficient ways to move goods.
Read more »