Convoy has 1,500 employees, and the revenue per employee ratio is $71,225. It currently has 400,000 trucks. Sacra reserves any and all intellectual property rights in the report. McKinseys long-standing research into M&A strategieshas repeatedly reaffirmed that it is not the total value of transactions but the deal pattern that drives shareholder returns. Convoy peak revenue was $106.8M in 2021. On-demand trucking and freight marketplace Convoy has raised $400 million in a series D round of funding co-led by Generation Investment Management and T. Rowe Price Associates, with participation . Convoy believes it can increase earnings for truck drivers while simultaneously reducing cost for shippers by removing inefficiencies in the existing supply chain, as seen in the flywheel below. But thats more of an industry issue versus something specific to Convoy or an individual broker, said Paul. They managed to generate five percentage points more annual excess TSR than inconsistent growers and large-deal acquirers. Carriers also get a fuel card that gets them discounts at certain gas stations and deals on used trucks/trailers, roadside assistance, and spare parts. Right now with the current system so manual and inefficient we dont even know what the real potential is to limit waste and create much greater efficiency.. With less than 1% of the US trucking market, Convoy has a lot of growth headroom as a marketplace. Worldwide 5G network infrastructure revenue is on pace to grow 39% to total $19.1 billion in 2021, up from $13.7 billion in 2020, according to the latest forecast by Gartner, Inc. Communications service providers (CSPs) in mature markets accelerated 5G development . Our study found that, on average, 80 percent of growth comes from a companys core industry and the remaining 20 percent from secondary industries or expansion into new ones (Exhibit 4). You can never really turn that entrepreneurial spirit off.. With hefty brokerage fees that correspond to the high labor demands of the task, the trucking industry has a costly problem that Convoy is using technology to solve. For shippers, Gavin said Convoy enables elastic capacity, which can help amid unpredictable demand and the apparent truck driver shortage. Transfix's primary competitors include Trucker Path, Cargomatic, CloudTrucks and 13 more. Now we can really start to scale our business., Looking ahead to a potential world with self-driving trucks, Convoy says it is well positioned, calling it a significant opportunity for Convoy and an exciting area to partner in., This shift in fleet management is a natural fit for digital freight networks like Convoy, Lewis wrote in the blog post. Convoy, founded in 2015, connects freight shippers and carriers. Many members of this minority are companies in slow-growing regions, such as Japan, that offset lethargic local growth with aggressive international expansion. Quarterly revenue growth measures the increase in a firm's sales from one quarter to another. Convoy revenue is $106.8M annually. . Global Freight Broker Software Industry Research Report, Growth Trends and Competitive Analysis 2022-2028 24/7 Helpline: +1 626 539 9760 enquiry@qyresearch.com Convoy, the digital freight network that connects truckers with shippers, has raised $400 million in a Series D funding round as it aims to scale its business amid an increasingly competitive. Convoy revenue is $297.2 M. How many employees does Convoy have? Convoy has 910 employees. We want to hear from you. Let us know. Sign up for free newsletters and get more CNBC delivered to your inbox. Healthy growth has also been hard to sustain. However, instead of charging a fixed percentage, it creates a price arbitrage between what a shipper is willing to pay and what a carrier expects as a fee and keeps the difference. Uber expects its Freight arm to generate positive adjusted EBITDA in 2022. Uber listed Convoy as a competitor in its IPO prospectus earlier this year. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you. With COVID waning, the traditional shippers are getting surplus capacity, which can push the enterprise players away from digital marketplaces. convoy revenue growth. The larger the network grows, the more efficient it becomes. Convoy offers basic financial services like a fuel card and invoice factoring with free same or next-day payment to carriers and recently added a paid Quick Pay service to get the payment in 8 hours at a 1.5% transaction fee. Truck drivers download Convoys free app to find work without going through brokers who typically use emails and phone calls. Win whats next. Senior Compensation Manager (Manager) at Convoy Inc.. See Matthew Condon's email address, phone number and work experience. Drivers are getting paid less and more than 600 carriers went out of business in the first half of 2019, up from 175 in the same period last year, The Wall Street Journal reported. Baillie Gifford, Fidelity Management and Research Co., Durable Capital Partners LP, and existing investors CapitalG and Lone Pine Capital also participated. Shippers also get a dashboard to track their orders live, see ETAs, get delay alerts and run analytics on historical data. Since its founding in 2015, Convoy has grown to handle tens of thousands of loads per week, booked using its app that matches shippers and truck operators. Convoy Convoy, a Seattle-based digital freight booker backed by Bill Gates, Jeff Bezos and Al Gore's Generation Investment Management, closed a $400 million funding round to expand use of its. Convoy can layer more products and create a Toast for brokers that helps them better manage their operations. These are the 2021 CNBC Disruptor 50 companies, The 2021 CNBC Disruptor 50: How we chose the list of companies, Robinhood's disruptive force: The good, the bad and the controversy. Convoy is one of a handful of Seattle startups valued at more than $1 billion, or "unicorns." The latest investment included a $160 million equity round led by Baillie Gifford and accounts. 2 That has not been easy to accomplish over the past 15 years. Convoy will use the cash to grow its 1,300-person workforce and attract more tech talent. The other is geography. Convoy headquarters are located in 1501 4th Ave Fl 24, Seattle, Washington, 98101, United States . But after GeekWire interviewed Lawrence last year, the former Royal Canadian Navy member had to shut down Lawrence Express Lines, citing high insurance costs and an industry that took a huge dive this year.. Finally, instill the capabilities and operating model to execute with excellence. Fully considering the economic change by this health crisis, Roadway accounting for % of the Digital Freight Brokerage global market in 2021, is projected to value US$ million by 2028, growing at a revised % CAGR in the post-COVID-19 period. The $800 billion U.S. trucking industry is massive, but Convoy does face stiff competition. An air-conditioning and refrigeration manufacturer, for example, managed to offset slow growth in Japan by successfully expanding to North America and China. Both Remitly and Convoy are ranked among the top 10 on the GeekWire 200, our ranking of top Pacific Northwest startups. Revenue growth is a key performance indicator expressed as a percentage, representing how able your company is to grow its revenue over a period. Furthermore, brokers are incentivized to maximize their margins rather than make efficient routes, resulting in 35% of miles driven back by trucks without freight, with a loss of $10B annually. However, these figures varied among sectors during our study period. Chris Bradley is a senior partner in McKinseys Sydney office; Rebecca Doherty is a partner in the San Francisco office; Nicholas Northcote is a senior adviser in the Brussels office; and Tido Rder is an associate partner in the Munich office. Large incumbent brokers are digitizing their operations in response to Convoy and Uber Freight. It grew ~3x from 2018 to 2020 by offering enterprise customers take rates as low as 1%, undercutting its competitors. It is classified as operating in the Long Distance Freight Trucking industry. Founders: Dan Lewis (CEO), Grant GoodaleLaunched:2015Headquarters:SeattleFunding: $668 millionValuation: $2.7 billionKey technologies: Artificial intelligence, cloud computing, deep learning, Internet of Things, machine learningIndustry: LogisticsPrevious appearances on Disruptor 50 List: 2 (No. Convoy is one of many fast-growing logistics tech startups including many in the Seattle region that have raised billions of dollars in recent years amid supply chain chaos. This pattern of digitization has played out in nearly every other industry, and its happening in trucking right now, Convoy CEO Dan Lewis wrote in a blog post. convoy revenue growth. Last year, Transfix had $184 million. I follow technology-driven changes that are reshaping transportation. But the bar is highfewer than half of the companies in our sample excelled at more than three of the ten rules, and only 8 percent mastered more than five (Exhibit 2). 1 We'll help you find what you need As revenue growth is a percentage, ABC Company's growth between December and January was approximately 4.17%. Gross revenues in the domestic transportation management segment that includes freight brokers hit $139 billion last year, up 52.4% from 2020, according to Evan Armstrong, president of Armstrong &. Shippers can add new loads to Convoy through their portal (primarily used by SMBs) or by integrating it with their transport management software (used mostly by enterprise shippers). The company has rolled out various new features over the past year, including Convoy Go, a drop and hook marketplace that lets any carrier haul pre-loaded trailers; Automated Reloads, which uses machine learning to group full-truckload shipments for carriers and is helping reduce empty mile carbon emissions; Instant Bidding, which lets carriers bid on loads; and Convoy Connect, a transportation management system. A high return on invested capital (ROIC) indicates a business model powered by a competitive advantage. All rights reserved. It just has more people doing the same thing with the same level of efficiency.. Subscribe to GeekWire's free newsletters to catch every headline, Photos: Seattle Sounders fans celebrate teams second MLS Cup victory with march and rally. Founded in 2015 by Dan Lewis and Grant Goodale, both Amazon alumni, Convoy took a technology-first approach to the problems of waste in the logistics industry and inefficiencies in the supply chain. Convoy QuickPay, which gets payment to drivers in 48 hours. That is Convoys mission.. The authors wish to thank Abhranil Das, Marjan Firouzgar, Anna Koivuniemi, Monika Kumari, Karin Lffler, Nikolaus Mller-Mezin, Joanna Pachner, Florian Popp, Monica Rodriguez, and Jacco Vos for their contributions to this article. Truckers and shippers coordinate loads using Convoy's smartphone app. Companies that expanded internationally generated 1.9 percentage points more annual TSR than their industry peers, but those with healthy growth in their home markets benefited more than those merely treading water at home. 1301 2nd Avenue Suite 1300 Seattle, WA 98101 United States +1 (425) 000-0000 Convoy Timeline 2020 2021 2022 2023 Financing Round Captured Employee Count Estimated Employee Growth Want detailed data on 3M+ companies? Today truck brokerages and large carriers have pretty significant teams of people whose job is to call around and find a truck, typically relying on a list of a hundred or so drivers theyre familiar with, Lewis, 38, tells Forbes. A home improvement retailer achieved its growth in a category that grew at 3 percent annually, and the company generated annual TSR of 17 percent. Convoy Supply Construction Materials. Convoy is the only digital marketplace that lets brokers list their loads on its platform and use its SaaS for matchmaking, competing with newer startups like MVMNT (raised $24.5M; backed by A16Z) that offer back-office SaaS to SMB brokers. The region that accounted for the largest share of revenue at the start of the analysis period is termed the local or home region, while all other regions are classified as international regions. Convoy's latest post-money valuation is from April 2022. The latest round of funding is the largest for a Seattle-area startup this year. Firms facing market headwinds, on the other hand, may need to aggressively reallocate their resources toward tailwinds, potentially staging large-scale pivots. According to Crunchbase, Convoy has attracted over $665 million in five rounds of venture capital funding.In its latest Series D round, announced in November 2019, the company was able to raise $400 million at a valuation of $2.75 billion. It also hired John Murrow in October as general counsel; he previously helped two companies go public. We operate in line with the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013 and updated in 2016, and the Liquid Fuels Charter (2000). Convoy found an initial product-market fit by signing up the top 10% high-volume routes of two large enterprise shippers and using this demand to aggregate trucking companies operating on those routes. $106.8 Million What is Convoy's Revenue? Corporate growth slowed dramatically after the global financial crisis, with the worlds largest companies growing at half the rate they did before 2008. Robinson booked $875M through its app/portal in 2021, up ~200% annually. Convoy's platform, accessible via a smartphone app, uses machine learning to match carriers to loads and prevent trucks from driving "empty miles" with no loads. ET Note: Size of the bubble indicates valuation. The startup makes money by keeping a percentage of each transaction made via its marketplace. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. convoy revenue growth. When developing a growth strategy, often the first question on a CEOs mind is, Where should that growth come from? To help find the answer, we categorized revenue increases among our sample companies into growth within the core industry (their largest industry segments at the start of the study period), in secondary industries (smaller but still significant revenue contributors in the first year of our time frame), and in new industries (segments where the companies did not initially have a presence). Gavin, a former general manager at Microsoft and Amazon, said thats a point of pride for the company. Take the example of General Mills purchase of Pillsbury from Diageo. Ryan is the Chief Growth Officer at Convoy. Convoys core thesis is to replace this inefficient manual matchmaking with algorithmic matchmaking. In faster-growing areas, such as China and North America, international regions accounted for closer to 30percent of total growth. The more brokers a carrier tries to use, the more schedules and routes that carrier needs to juggle, resulting in route inefficiencies and wasted space. 2. Weve got a lot of people who are excited about taking blank whiteboards and turning them into incredible value for customers. The start-up and its star-studded team of backers are betting that there's a better way to move freight. Its another busy day for Dan Lewis. While that development has allowed CPGs to reliably capture value, the landscape has shifted, and the bar is rising. How will Convoy beat Uber and other startups including Transfix and Cargomatic? According to Convoy, that 35% translates to 72 million metric tons of CO2 equivalent emissions. 2017 Series C. Transfix raised a Series C of $42M at a $227M valuation in July 2017. Never miss an insight. The current transition to net-zero carbon emissions, for instance, presents many promising opportunities for companies in chemicals, construction, and other industries to expand into fast-growing adjacencies such as recycled plastics, sustainable construction materials, or meat substitutes, as demand for their legacy products declines. Together, these segments now account for approximately 75 percent of the companys total revenue, and its growth exceeded that of its peers by 2.4 percentage points per year. Calculate monthly. Its a tall order, especially given what is happening to the U.S. trucking industry. Why is programmatic M&A so powerful? Hes just come out of a big meeting with one of the top 10 shippers in the world. Convoy Headquarters 1301 2nd Ave. Ste 1300 Seattle, Washington98101 1-424-214-1769 Driving Directions Convoy Summary ABOUT Overview Convoy is a Washington-based digital freight network that connects shippers and carriers for booking shipments and moving truckloads. Defined as the largest region in the portfolio by revenue. It also has a growing office in Atlanta. Convoy has raised a whopping $668 million since launching in 2015 and is also backed by the likes of Microsoft co-founder Bill Gates; Amazon founder Jeff Bezos; Expedia Chairman Barry Diller; Salesforce CEO Marc Benioff; Code.org founders Hadi and Ali Partovi; former Starbucks president Howard Behar; U2s Bono and The Edge; among others. By automating load matching and allowing carriers to see all available freight at any given time, Convoy shrinks empty miles and wasted hours while boosting profitable hours for truckers. Show all. Investment in the Series D was led by Gores Generation Investment Management and T. Rowe Price, with backing from Baillie Gifford, Fidelity, Durable Capital Partners, CapitalG and Lone Pine Capital. Convoy mentions that 100% of matching in its top markets is automated, with a matching time of a few minutes. 2. Convoys platform, accessible via a smartphone app, uses machine learning to match carriers to loads and prevent trucks from driving empty miles with no loads. Operator of a digital freight network intended to transport truckloads. Promoted articles. One inefficiency is just finding the truck. Transfix is an online freight marketplace that connects shippers and carriers for booking truck loading spaces and tracking shipments. According to Transport Topics, only eleven freight brokerages have gross revenues exceeding $1 billion and the twentieth largest brokerage posted $500 million in 2018 gross revenues. Convoys primary verticals are consumer-packaged goods; food and beverage; manufacturing and industrials; and retail/wholesale. For carriers, besides a mobile app where they bid on the loads, Convoy also provides a mini SaaS that lets them manage their operations better. by Taylor Soper on April 21, 2022 at 2:00 amApril 21, 2022 at 7:36 am. Convoy's annual revenues are $10-$50 million (see exact revenue data) and has 10-100 employees. Founders (and former Amazon. I know thats differentiated us.. EX -> CX -> revenue growth. I dont think these digital brokerage platforms are going to have a significant negative impact on rates, she said. This is an exceptional opportunity to achieve a reduction in carbon emissions, while simultaneously increasing earnings for truck drivers and increasing service quality for shippers.. We studied the performance of these companies from 2005 to 2019, the 15 years prior to the COVID-19 crisis. Truck drivers download Convoys free app to find work without going through brokers who typically use emails and phone calls. Firms that managed to grow faster and more profitably than their peers during our study period did even better, generating shareholder returns six percentage points above their industry averages. It's common for companies to calculate their revenue growth on a monthly basis. Any modification, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, or selling any report is strictly prohibited. by Taylor Soper on November 13, 2019 at 3:00 amNovember 13, 2019 at 12:44 pm. Since we structure SaaS loans based primarily on revenue growth and the available amount of capital is driven off of multiples of MRR or ARR, the total borrowable funds can increase as revenue grows or key metrics improve. 2016 Series B. Transfix raised a Series B of $22M. Founders (and former Amazon executives) Dan Lewis and Grant Goodale recognized that 80% of every freight dollar is spent on trucking, but 35% of miles traveled are wasted with empty trucks. The latest investment included a $160 million equity round led by Baillie Gifford and accounts advised by T. Rowe Price Associates, Inc., and a $100 million venture-debt investment from Hercules Capital. Generation also led a massive round for fellow Seattle startup Remitly this past July. On the other hand, SMB brokers don't have the talent or money to digitize their operations and are at risk of being replaced by digital marketplaces.