Two years ago, Flexport, a logistics company, acquired the assets of Convoy, an erstwhile freight tech unicorn that had ceased operations.
A “massive return on investment for Flexport” has been achieved by the platform that has been sold.
Flexport declined to disclose the terms of the sale to DAT Freight & Analytics, which was announced on Monday.
Ryan Petersen, the founder and CEO of Flexport, stated that the [Convoy] platform has been rebuilt and relaunched as a neutral digital freight execution layer that caters to brokers, carriers, and shippers throughout the market over the past 18 months.
“That expenditure yielded favorable results.” The platform is now significantly more valuable, widely used, and stronger than at its acquisition. It became evident as the Convoy Platform matured that to realize its maximum potential, it needed to function as a neutral infrastructure layer.
Petersen stated that selling Convoy’s technology will enable his company to “concentrate our capital and energy on our core business” of assisting customers in the global freight transportation.
Flexport’s recent announcement of the launch of a suite of AI-powered tools and its intention to introduce new products to its consumers twice annually, which was inspired by Airbnb CEO Brian Chesky, has resulted in the sale.
Flexport informed TechCrunch that the second product release would occur in the “late summer.”
