Flexport sells former freight unicorn Convoy’s tech 2 years after buying it

San Francisco, CA – Logistics giant Flexport has announced the sale of the technology platform it acquired from the former digital freight unicorn, Convoy, just two years ago. The move, undisclosed in terms, has reportedly yielded a “massive return on investment” for Flexport, marking a significant strategic shift for the company.

The sale, announced Monday, transfers the Convoy platform to DAT Freight & Analytics. Flexport had acquired Convoy’s assets in November 2023, following the freight tech startup’s closure. Since then, Flexport invested heavily in rebuilding and relaunching the platform.

Ryan Petersen, Flexport’s founder and CEO, stated, “Over the past 18 months, we rebuilt and relaunched the [Convoy] platform as a neutral digital freight execution layer that serves brokers, carriers, and shippers across the market. That investment paid off. The platform is now stronger, more widely used, and far more valuable than when we acquired it. As the Convoy Platform matured, it was clear that to achieve its full potential, it needed to be a neutral infrastructure layer.”

Petersen further emphasized that divesting the Convoy tech allows Flexport to “focus our capital and energy on our core business” of facilitating global freight movement for its customers. This strategic divestment follows closely on the heels of Flexport’s recent unveiling of a comprehensive suite of AI-powered tools. The company also announced plans to launch new products twice a year, an agile approach inspired by Airbnb CEO Brian Chesky.

Flexport confirmed to TechCrunch that their second wave of product releases, including further AI innovations, is anticipated in “late summer.” This sale underscores Flexport’s commitment to refining its core offerings while strategically monetizing successful ancillary ventures.