Convoy has another weapon in its effort to solve what CEO Dan Lewis classified as “evergreen problems” facing the trucking industry: $185 million.
The Seattle-based digital freight matching firm announced last week it raised that amount through a fresh financing round led by CapitalG, the growth equity investment fund of Google parent company Alphabet. That brings the total raised by Convoy to more than $265 million.
Lewis said he has often heard from truckers that “the price I’m quoted isn’t always what I get.” That was just one example of those evergreen problems he outlined in an interview with Fleet Owner after the financing was announced.
To address this issue, Lewis said Convoy offers instant, upfront pricing, as well as guaranteed, quick payments and a “no hassle, guaranteed detention program."
Convoy is also helping drivers by offering shippers “slightly better pricing” if they continually receive positive reviews. The company acts as a consultant to shippers through the tracking of hundreds of data points starting the moment a tender is offered.
Lewis said there have been instances when Convoy have informed shippers information such as that a morning shift in a particular warehouse is underperforming in comparison with others in the region. After suggested improvements are implemented, Convoy informs truckers of the changes and recommends they consider giving that shipper another opportunity.
Convoy is now working with about 10,000 fleets and owner-operators, and 500 shippers from industries including food, beverage, retail, and manufacturing. Freight through the app is available nationwide, though density varies by location. Lewis suggested longer-term plans would include cross-border shipments into Canada.
It has about 300 employees, split between tech development, sales, and all other functions including call center operations.
While Convoy’s system relies heavily on automation, there is “still obviously manually work to do,” Lewis said. “We know this isn’t just about robots figuring it all out."
