Flexport has officially announced the sale of the technology it acquired from Convoy, a former freight tech unicorn that ceased operations, to DAT Freight & Analytics. The terms of the sale were not disclosed by the logistics company. They emphasized that this decision frees them to return their attention to their primary mission — enabling their customers to connect and truly move the world.
Ryan Petersen, Convoy CEO and Founder of Flexport shared his excitement in the decision to divest Convoy’s technology. He’s convinced this decision will allow Flexport to focus its capital and resources on its core services. Flexport is taking this step two years after purchasing Convoy’s assets in 2023. In that time, they invested great time and energy into redefining the platform.
We’ve spent the past year and a half really focused on rebuilding [Convoy] and relaunching the … platform. Today, it is a neutral digital freight execution layer for brokers, carriers and shippers across the market, Petersen added. He added that this investment has proven fruitful, as “the platform is now stronger, more widely used, and far more valuable than when we acquired it.”
The strategic pivot is part of a broader shift happening within the logistics sector. More than ever, companies are relying on technology and artificial intelligence. Flexport recently launched an impressive new armada of AI tools. These tools are designed to massively increase their output and current service offerings. Flexport will release new tools and products for its customers on a biannual basis. This strategy is not only real—it’s based on Airbnb’s CEO, Brian Chesky.
Flexport is looking to roll out its next product by late summer. Sean O’Kane covers the intersection of transportation, business, and technology for The Verge. The company’s commitment to regular product launches aligns with its goal of continuously evolving and improving its services for clients.