Flexport Sells Convoy Tech to Refocus on Core Freight Business
Logistics giant Flexport has officially sold the technology behind Convoy, the former freight unicorn it acquired two years ago. This move answers the common question among industry watchers: What happened to Convoy's platform after Flexport acquired it? According to Flexport CEO Ryan Petersen, the sale marks a “massive return on investment” for the company and reflects a renewed focus on global freight forwarding. The buyer, DAT Freight & Analytics, is now positioned to take the Convoy platform further, leveraging its capabilities across brokers, carriers, and shippers.
Image Credits:Flexport
Flexport Sells Convoy Tech: Why the Deal Happened
When Flexport acquired Convoy’s assets in 2023, the once-celebrated Seattle-based freight startup had collapsed under mounting financial pressure. Despite its unicorn status and a valuation north of $3 billion, Convoy shut down due to tightening margins and a volatile freight market. Flexport saw an opportunity—not just to salvage the tech, but to reimagine it. Over the next 18 months, the company transformed Convoy’s system into a robust, neutral digital freight execution platform. According to Petersen, this rebuilt infrastructure has become more reliable and widely used than ever before.
Selling the platform to DAT Freight & Analytics wasn’t just a business decision—it was a strategic move grounded in the belief that the Convoy platform could scale best under a neutral third party. By offloading the tech, Flexport is freeing itself to concentrate on its global logistics operations, something Petersen insists will become even more critical as the company rolls out its next generation of AI-driven tools and services.
Strategic Realignment After Flexport Sells Convoy Tech
Flexport’s decision to part ways with the Convoy platform comes at a time of internal transformation. Earlier this year, the company unveiled its first wave of AI-powered tools aimed at improving visibility, reducing delays, and streamlining freight forwarding operations. Inspired by Airbnb’s innovation cycles, Flexport has adopted a biannual product release strategy, with its next round of features scheduled for late summer 2025.
This pivot toward product innovation is closely tied to Flexport’s renewed focus on its core competencies. Rather than acting as a platform host for third-party freight tech, the company wants to dominate the space by offering seamless, intelligent logistics services to global customers. That includes doubling down on automation, enhancing real-time tracking, and offering predictive analytics—all areas where Flexport believes it can differentiate from competitors like Uber Freight and C.H. Robinson.
What Comes Next After Flexport Sells Convoy Tech
Now that Flexport has sold Convoy tech to DAT Freight & Analytics, the industry is watching to see how both companies evolve. For DAT, the acquisition presents a chance to modernize and diversify its freight marketplace using Convoy’s advanced infrastructure. Shippers and carriers already familiar with DAT’s load board system could soon benefit from a more intuitive, automated platform. Meanwhile, Flexport can sharpen its identity as a global supply chain innovator, rather than a tech landlord.
This realignment also signals a broader trend in freight and logistics: the rising importance of operational focus in a turbulent economic landscape. By exiting side ventures and zeroing in on core logistics functions, Flexport is aligning itself with what customers want most—efficient, scalable, and tech-enhanced global shipping. The sale of Convoy’s technology underscores that ambition and marks a new phase in Flexport’s evolution as a logistics leader.
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