Is Convoy done?

Trucking Recession Deepens As Bezos, Gates-Backed Convoy Cancels All Shipments, Load Board Is Empty | ZeroHedge

 

Hard to say. I don't know what they've spent on, and there's not a lot of publicly accessible information on their financials. That said: 3,000 employees, facilities, web services, etc adds up pretty quick. Just the employees for example, assuming an average pay of $85,000 (some will be more, some will be less), we're looking at $255,000,000/yr. That's before benefits, etc. And last year, they raised ... $260,000,000 in capital investment. Without seeing what they were making in margin on the loads or the load volume, I have no idea what level of viability they'd have had. That capital investment is basically wiped out by employee costs. Just screwing around with the Amazon Web Services calculator, their costs per month for hosting can get pretty astronomical pretty quick. I don't know enough about it to be able to accurately gauge how astronomical, but we're talking well north of millions.

 

It’s over: Convoy shutting operations, no strategic white knight to the rescue

Looks like it's effectively over for Convoy.

Wonder where that guy was who was saying "Brokerages aren't going out of business!"

 

Logically what would you be buying other than some technologies if you bought them.. customers won’t necessarily follow the name . As of now the big brokerages probably picked some of them up already anyways . Loads can’t sit and wait it out

 

They had gone through some layoffs and weren't at 3,000 employees anymore. Somewhere I read they were down to 800 employees currently but that's still a lot of people and big payroll.

 

Yeah, I have no idea of what their size and such was at time of shutdown. I just saw the 3000 people number somewhere, and that's what I ran with for my hypothetical scenario. People costs are a lot, and I can't imagine their operating costs were cheap.

 

Were those US based employees or employees from India. Everyone I talked to was from afar.

Three dollars per day is great pay over there..Same with Uber, although once in a great while someone from California would call.

Convoy never really had any decent loads ..mainly short haul stuff. Other brokers, USA Truck etc listed their stuff through Convoy. Some you had to fill out a carrier packet, others like VP Logistics you didn’t. Regardless of who you booked with on the app you still received all the convoy benefits..Free quick pay and your money was in your account within 2 days. Detention you got $40 per hour up to 5 hours and never got any bs.

I just did one directly from Convoy Lima, OH to West Palm, FL $3,250. Next week another broker had listed a bunch of the same loads $2,450 .. I laughed. Looking back, I bet Convoy gave them the lead knowing what was going to be happening.

 

I dunno I would imagine that's all their US based people but couldn't say for sure. I never booked or even talked to them not a single time in the several years they'd been in business. My buddy booked from them many times. He was in Chicago area and they had loads there and on his other lanes. Around me here in TN not so much so.

To be honest I'm surprised CHR and all the other big players even employee Americans to answer the phones any more. Looks like an easy way to significantly cut costs. Coyote's night shift in the last couple of years seems to have been offshored to India. It's probably only a matter of time before they and others cut a bunch of that dead weight and offshore all 24 hours of the people who deal with phone calls from truckers.

 

I have a lot of experience communicating with those people in India...