Changing the Logistics Game and Inventing the Future of Trucking
Freight trucking is considered one of largest — and most antiquated — industries in the country. The market is extremely fragmented — most of the industry is made up of small owner operated businesses — which makes the logistics and operations process extremely difficult. Nearly $800 billion is spent on freight trucking in the United States annually, with the top 20 trucking companies owning only about twelve percent (12%) of the market share.
This is why we are excited to share the news that Greylock led the Series A in Convoy. Both of us are joining the board.
Convoy serves a tremendous need for the trucking industry. Currently, shippers have to work back and forth through brokers to negotiate pricing and arrange for trucks to haul freight. The process is still being done manually with phones calls resembling a game of never-ending phone tag between customers, brokers and carriers. This chain of communication is unnecessarily long and rife with ample opportunity for human error.
Focusing on the local and regional freight business, Convoy more efficiently connects commercial shippers and carriers to book jobs — cutting out the traditional middle man. This completely changes the logistics market by opening a more direct communication between the two parties and simplifying the booking process. Shippers can get instant price quotes and have end-to-end visibility over the shipment using GPS tracking. Carriers, on the other hand, can now receive job notifications (via mobile) that suit their equipment and location, without having to haggle over the price. Convoy empowers small, owner operated businesses to compete effectively with large carriers by linking them into a single trucking network.
Convoy is solving a true pain point by offering a platform that makes business more efficient and everyone’s lives much easier. Growth in Washington has come along at a strong clip. Given the high customer demand and positive market response, Convoy has opened up another region, Oregon, to expand their network for other truckers and shippers.
We invest in entrepreneurs who are solving real problems by creating great products and building sustainable businesses. Dan Lewis and his co-founder Grant Goodale — along with the team over at Convoy — are exactly that. Dan is an exceptional leader with deep experience in logistics and operations, and has put together a stellar team that is building a platform that will revolutionize the trucking industry.
Convoy is ushering in a new era in the trucking and freight logistics market and we can’t wait to be part of this journey for the long haul.
— Reid Hoffman & Simon Rothman