Convoy, a digital freight startup founded by former Amazon.com AMZN executives, is suspending operations and winding down its core business as it explores alternatives, including the possibility of selling its technology.
The company, which attracted substantial investment and featured a star-studded list of backers, has faced challenges in the changing freight market landscape.
Convoy's early investors featured prominent figures such as Microsoft Corp MSFT co-founder Bill Gates, Amazon founder Jeff Bezos, and former U.S. Vice President Al Gore, the Wall Street Journal reported. U2 lead singer Bono and guitarist The Edge also invested in the company.
Convoy recently emailed its employees that it would cease accepting shipments until further notice, with existing loads either rescheduled or canceled, as the decline in freight demand over the past year has significantly impacted the company's operations. Convoy is considering divesting various assets.
The company's business model involved matching available trucks with loads, and it aimed to enhance efficiency in the freight marketplace.
Its client roster included prominent names like Home Depot HD, Procter & Gamble PG, Unilever Plc UL, and Anheuser-Busch Inbev SA BUD.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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