On Thursday, the 19th of local time, renowned American tech logistics giant Convoy announced its closure, with its core operations being shut down.

Headquartered in Seattle, Convoy has been dedicated to transforming the freight industry through technological means since its inception in 2015.

With the goal of enhancing efficiency and reducing transportation costs, they successfully built a digital matchmaking platform connecting shippers and trucking companies.

As one of the largest digital freight platforms in North America, Convoy stood out in the industry with its remarkable technological innovation and market expansion capabilities, earning it the reputation of being the “Uber of the trucking sector.” It ranked 54th among the 100 largest logistics and transportation companies in North America.

Its business model was indeed reminiscent of Uber’s, where customers could use an app to post their freight requirements, and registered drivers could accept orders at their convenience.

Source：GatesNotes

In April of the previous year, Convoy announced a $260 million new financing, which consisted of two parts: $160 million in Series E preferred stock financing led by Baillie Gifford and T. Rowe Price Associates, and $100 million in venture debt investment from Hercules Capital. Additionally, Convoy secured a new $150 million credit facility from JPMorgan Chase. At that time, the company’s valuation was approximately $3.8 billion.

Furthermore, notable individual investors in the company included Bill Gates, LinkedIn co-founder Reid Hoffman, Amazon founder Jeff Bezos, and former Starbucks president Howard Behar.

However, despite its initial success, Convoy faced challenges due to increased market competition and changing macroeconomic conditions.

In June 2022, Convoy announced plans to lay off 7% of its workforce.

In November 2022, Convoy announced another round of layoffs, with CEO Dan Lewis stating in an email to employees that the company had doubled its workforce in the past 18 months but faced a slowdown in growth due to “macroeconomic headwinds,” necessitating staff reductions. This round of layoffs amounted to around 300 people, representing approximately 11% of the total workforce.

From Dan Lewis’s message to employees, it becomes evident that the company attributed its closure to the decline in freight demand and the contraction of the capital markets.

In recent years, driven by the “Internet+” trend, the logistics industry has embarked on a new wave of smart transformation and investment fervor. Capital flowed enthusiastically, splitting investments between business and technology. Looking back now, the question arises: was technological innovation more formidable, or were market dynamics more unforgiving?