Convoy Inc. About 500 people have lost their jobs due to the sudden closure. According to a CNBC report, Convoy was going through difficult times but had secured funding of $260 million in 2022. Convoy co-founder and CEO Dan Lewis said the company had to take this decision due to the collapse in the freight carrier market as well as monetary tightening.
“As you all know, over the past few days we have been minimizing disruption to shippers and carriers by ensuring that all transit shipments reach their proper destinations,” Convoy co-founder and CEO Dan Lewis said in a memo to employees. Actions are being taken to reduce it. Thanks to everyone who stayed focused and got it done.
The CEO of Convoy said that as always, you guys do amazing work. With the completion of that action, Convoy will cease its current core business operations. While some of our team will continue to manage this windup transition and possible future strategic options (which have already been discussed), today is your last day at the company.
Dan Lewis told employees that we hoped this day would never come. We spent over 4 months considering all viable strategic options for the business. However, ultimately no alternative emerged strong enough to maintain the company in its then current form.
The company CEO said that this unprecedented decline in the freight market, coupled with the dramatic monetary tightening we have seen over the last 18 months, has dramatically reduced investment appetite and flows into unprofitable private companies. Has reduced. Furthermore, amid these freight and financial conditions, M&A activity has shrunk substantially and most of Convoy’s logical strategic acquirers are also suffering from the freight market collapse, making deals very difficult.