Seattle-based trucking startup Convoy, previously backed by high-profile investors like Jeff Bezos and Bill Gates, is reportedly set to reduce its workforce significantly as it seeks to attract potential buyers. This once-prominent startup, often dubbed the “Uber for trucking,” has already downsized from a peak of 1,500 employees to around 500. Its financial situation was becoming increasingly precarious, and it was on the verge of running out of funds in a matter of weeks.
In a strategic move to make itself more appealing to prospective acquirers, which are likely established players in the trucking industry that Convoy aimed to disrupt, the company is planning to lay off a substantial portion of its remaining workforce.
Among potential buyers, Walmart and A.P. Moller-Maersk were initially active in negotiations, but the level of their engagement has reportedly decreased in recent times. This suggests a complex situation surrounding Convoy’s potential acquisition.
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Concerns were raised among Convoy’s customers when the company sent out an email notification informing them that no new orders could be accepted and advising the cancellation of existing orders scheduled for pickup within the next three days. The correspondence from Convoy’s sales team was reviewed by Bloomberg, and the news about shipment cancellations was first reported by the supply chain news website FreightWaves.
A spokesperson for Convoy has stated that the company is in the midst of a transition and is expected to provide more details regarding its situation within the next two days. Convoy’s journey from a high-profile trucking disruptor to a company in transition reflects the competitive and ever-changing landscape of the logistics and transportation industry.
