Convoy Shutting Down?

Just got paid, money will show in my account after midnight as usual. They obviously made changes lately because they would only cut checks on Tuesday’s and Thursday’s. The 30 days to pay that they’re advertising is when someone uses a factoring company. Imo the way they have it worded now is going to scare off some. They really need to clarify what they mean before it’s too late.

The old way for example, I could deliver early on a Tuesday, submit the pod right away and get approved and paid by the end of the day.

Makes me wonder how many will start factoring their loads now due to the 30 day payment wording. Or they know exactly what they’re doing and trying to get companies to use the “Uber Freight Card”

 

I know most O/O's didn't like Convoy, but I thought they were great. Over the 4 years I had my own operation, literally half of my brokered business was through them. But I had a unique situation where I lived in California, had contract freight coming into my home state and used mostly Convoy to book loads out of the state that paid a lot of money. By the time I retired in October of 2021, that year I grossed over $150k just from Convoy loads over 10 months. It seemed like a great model, but obviously something wasn't working right behind the scenes, and it wasn't sustainable. Oh well, just one more reason that I'm glad I'm out of that rat race.

 

Update:
Flexport acquires Convoy technology stack for undisclosed sum

https://www.freightwaves.com/news/flexport-acquires-convoy-technology-stack-for-undisclosed-sum/amp

 

See the full email from Flexport founder Ryan Petersen
Team,

We’ve acquired Convoy’s technology stack and are planning to retain a small group of team members from their core product and engineering team. We are not acquiring Convoy the company or any of its liabilities, and our expenses will be limited to what’s necessary to maintain the tech.

Although we are not acquiring the business, we will be looking to restore their full-truckload service in the coming weeks and have already received positive intent from some of their largest customers to come back.


Is this legal?

 

"We enter into this transaction with our eyes wide open regarding the discipline and focus required to integrate the technology successfully. We’re not talking about financial risk, as the purchase price relative to value is modest. Rather, as a company, we are already heads down focused on returning our business to profitability, so we will do everything in our power to minimize distraction and ensure that our leaders can stay focused on the mission at hand."

CEO-speak at its finest. Here's my best attempt to translate:
"We enter into this transaction with our eyes wide open regarding the discipline and focus required to integrate the technology successfully."
We know people are going to say we are idiots for trying to bolt Convoy's app onto our platform, but we think we can do it.

"We’re not talking about financial risk, as the purchase price relative to value is modest."
People will say we shouldn't spend more money to buy stuff when we're not profitable, but it was so cheap we couldn't pass it up!

"Rather, as a company, we are already heads down focused on returning our business to profitability, so we will do everything in our power to minimize distraction and ensure that our leaders can stay focused on the mission at hand."
So what we've never made money and we spent an undisclosed amount more buying something that failed? We're going to make money. I promise. Please invest in our next round.

 

Absolutely odd decision there, but yeah, I'd seen that a few days ago.

 

Uber Freight has gotten worse......I need a new broker

 

If you're running for just one bottom feeder broker off their bottom of the barrel internal load boards, you're probably doing it wrong.