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In a world where too many startups sell themselves as the ‘Uber of (blank)’ few startups fit the model as closely as, Convoy. Now, with a fresh round of funding reportedly in place, the trucking ride-share company seems poised to earn even more.
Identifying a Need
After learning that more than 40% of big-rigs on the road in the United States today travel empty, Convoy founders Dan Lewis and Grant Goodale noticed a growing business opportunity. Soon they developed Convoy – an app that allows available trucks to pair with businesses in need of shipping.
A Win/Win Idea
Convoy uses an app that matches reliable drivers with companies in need of shipping freight. This system streamlines the entire shipping process and benefits both parties. Shippers get faster pick-ups at cheaper rates, and carriers spend less time looking for their next load and make more as a result. Not to mention the reduction in miles and subsequent reduction in fuel emissions which benefit the environment.
Not the Only Game in Town
Convoy is not alone in the space, however. Two years before its founding, another company with a very similar concept called TransFix was also founded. That company stands in direct competition to Convoy. However, being that the trucking industry is an $800 billion industry, there seems to be plenty of business to split up between the pair.
Big Investors Jumping-In
As reported by Pitchbook, Convoy has recently closed a fresh round of $198 million in funding. At this price, the new round reportedly values the company at over $1.1 billion. To date, Convoy has raised an impressive $278.5 million in total funding. Along with the most recent round, Convoy also raised a $62 million round of Series B funding in 2017, along with a previous round of $16 million in Series A closed in 2016. And the list of investors is quite impressive as well. Among those who investing in Convoy are Y-Combinator, Jeff Bezos, and even Bono and the Edge of U2.
As to which freight-share company will ultimately earn the lion’s share of the market is anyone’s guess, but smart money is already investing in Convoy.