Dive Brief:
- Flexport has relaunched Convoy’s digital load board platform after acquiring the technology from the shuttered company in November, Flexport announced Thursday.
- The technology caters to small carriers, those with 10 or fewer trucks, because they can quickly make decisions on accepting loads, Flexport EVP and Head of Trucking Bill Driegert told Trucking Dive in an interview.
- “It’s going to be those smaller carriers that are going to have the most flexibility … that are going to be more app centric,” he said.
Dive Insight:
The reintroduction of Convoy’s platform gives independent owner-operators and small carriers access to loads from shippers requiring near-real-time visibility for full truckload service, Flexport said in its announcement Thursday.
In a Thursday LinkedIn post, Flexport CEO Ryan Petersen said Convoy app users — which totaled about 400,000 truck drivers prior to Flexport's acquisition of the technology — appeared ready to return. He added nearly 200 loads were tendered following Wednesday's relaunch.
“Carriers are coming back in force as we drive demand into the system for them to execute,” Peterson said on LinkedIn.
Driegert said shippers also will see benefits from Convoy’s return. It provides access to a pool of carriers with a track record of flexibility and reliability that have been vetted through the platform.
Flexport has been undergoing cost-cutting measures and slashing jobs. However, the logistics company plans to extend the Convoy platform to freight brokers by Q2, according to its announcement.
Driegert could not say when Flexport could begin to see a return on its investment but is optimistic.
“I can say that for Flexport of course, we’re on... a drive to profitability and I’m confident in our trajectory there and certainly, Convoy contributes to that,” he said.
While many Convoy users were left in the cold following the company’s shutdown, Flexport is counting on its past performance to win back shippers and carriers.
“Despite how things may have been in the final hours, there’s just so much value and credibility that was built over those years and that’s really what we’re building upon,” he said.
Relaunching the platform now gives Flexport and Convoy app users the ability to act on loads as freight conditions improve, Driegert said. He noted there are signs the freight market may be turning but the company didn’t time the relaunch in anticipation of a possible seasonal spring uptick.
The Convoy interface should be familiar to users, Driegert said, though some app functions may not be fully available. Flexport continues refining the software to improve it, which will be an ongoing process.
“Certainly over this year, we will be very focused on how to expand this,” he said. “It’s really about how we drive value for our core customers and our core shippers as well as legacy Convoy customers, both shippers and brokers that still value this platform.”
Clarification: A reference to the number of users on Convoy was updated to clarify the technology had 400,000 truck drivers prior to the acquisition by Flexport.
