The management team used this advantage to expand the store network from approximately 900 locations that year to more than 1,500 in 2019. We operate in line with the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013 and updated in 2016, and the Liquid Fuels Charter (2000). Convoy's valuation in April 2022 was $3,800M. Alpega is a B2B logistics software firm that offers end-to-end solutions for all transportation needs. This suggests that even when companies that grow purely organically match the growth rates of their acquisitive peers, they are less likely to generate peer-beating shareholder returns (Exhibit 7). The Seattle-based company has now raised more than. They managed to generate five percentage points more annual excess TSR than inconsistent growers and large-deal acquirers. Former Expedia CEO Mark Okerstrom joined the company in August 2020 as president and COO. Seattle, Washington, United States. The former category generated an additional 2.6 percentage points of annual shareholder returns through geographic expansion, while those that struggled locally gained only 1.3 percentage pointsnot enough to offset the performance drag from the weak home market (Exhibit 6). Fully considering the economic change by this health crisis, Roadway accounting for % of the Digital Freight Brokerage global market in 2021, is projected to value US$ million by 2028, growing at a revised % CAGR in the post-COVID-19 period. Prior to Convoy, Ryan served as . Co-Founder, Chief Executive Officer & Board Member, Chief Growth Officer & Chief Marketing Officer, Chief Revenue Officer and Advisor To Chief Executive Officer, Co-Founder, CXO, Carrier Experience Officer & Board Member, To view Convoys complete valuation and funding history, request access, To view Convoys complete cap table history, request access, Youre viewing 2 of 7 competitors. We found that programmatic acquirers still outperformed their organic peers. Subscribe to GeekWire's free newsletters to catch every headline, Amazon will extend Prime shipping benefits, and its own reach, to independent e-commerce sites, Amazon launches $1 billion Industrial Innovation Fund here are the first startups to land cash, raised billions of dollars in recent years, How global supply chain woes may be an opportunity for Seattle shipping-tech companies, Senior Site Reliability Engineer (Seattle or US Remote), Software Development Engineer III New Initiatives, Senior Software Development Engineer Lending (Seattle Or U.S. The latest investment included a $160 million equity round led by Baillie Gifford and accounts advised by T. Rowe Price Associates, Inc., and a $100 million venture-debt investment from Hercules Capital. We allocated each business segment in a corporate portfolio to one of 12 geographic regions. Amazon ( AMZN -0.04%), for example . Transfix's primary competitors include Trucker Path, Cargomatic, CloudTrucks and 13 more. Uber Freight is the largest trucking digital marketplace by revenue, grossing $2.1B in 2021. In fact, fewer than one in five of the companies in our sample that had below-median growth rates in their local region managed to outgrow their peers. Peak Revenue $106.8M (2022) Revenue / Employee The Seattle-based company said the new funds include $160 million from a round led by Baillie Gifford and T. Rowe Price and $100 million in venture-debt investment from Hercules Capital. Shippers also get a dashboard to track their orders live, see ETAs, get delay alerts and run analytics on historical data. Convoys platform, accessible via a smartphone app, uses machine learning to match carriers to loads and prevent trucks from driving empty miles with no loads. On the other hand, SMB brokers don't have the talent or money to digitize their operations and are at risk of being replaced by digital marketplaces. Though the segment also took a $81 million loss, more than double from last year. Convoy, a Seattle-based digital freight booker backed by Bill Gates, Jeff Bezos and Al Gores Generation Investment Management, closed a $400 million funding round to expand use of its data platform and other services that CEO Dan Lewis says reduces wasted time, empty trailers and even tailpipe pollution for truckers. All rights reserved. Our findings suggest ten imperatives that should guide organizations seeking to outgrow and outearn their peers. We can throw out some of the existing solutions or rebuild them. Convoy is a digital freight network that moves truckloads and design solutions that address supply chain inefficiencies. Please email us at: Author Talks: The worlds longest study of adult development finds the key to happy living, The executives guide to new-business building, Generative AI is here: How tools like ChatGPT could change your business. In fact, Lewis asked Bezos for help when creating the company values. This decomposition reinforced the importance of a healthy core business. Large incumbent brokers are digitizing their operations in response to Convoy and Uber Freight. The region that accounted for the largest share of revenue at the start of the analysis period is termed the local or home region, while all other regions are classified as international regions. This age-old axiom holds especially true today as the acceleration of pre-COVID-19 trendswidens the gap between corporate winners and laggards. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. The Information Technology and Communication Services sectors were the largest contributors to the 16.2% revenue growth rate for S&P 500 companies with more than 50% international revenue exposure. The key global companies of Truck Fuel Card include Fuelman, Comdata, ExxonMobil, Shell, Convoy, CEFCO, Universal Premium, Coast and WEX, etc. While some firms forgo profits for a time in pursuit of growth (with Amazon being perhaps the best known), the far more typical, and practical, approach is to establish a distinctive business model and then scale it. I think its a reflection of the culture weve built here, Gavin said. For shippers, Gavin said Convoy enables elastic capacity, which can help amid unpredictable demand and the apparent truck driver shortage. In their best-selling book, The Granularity of Growth, our colleagues observed that many growth sectors have sluggish subindustries, while relatively mature sectors include rapidly growing segments. Furthermore, brokers are incentivized to maximize their margins rather than make efficient routes, resulting in 35% of miles driven back by trucks without freight, with a loss of $10B annually. Its another busy day for Dan Lewis. Explore institutional-grade private market research from our team of analysts. By End of 2024, 60% of CSPs Will Commercialize 5G Service Covering Tier-1 Cities. View all funding This profile has not been claimed. By starting with enterprise shippers to build demand and attract carriers to its platform, Convoy compromised on its take rate and settled for low margins. The company offers and facilitates instant quotations and online booking, automated loading suggestions, bidding, online payments, and viewing of shippers and facility details on loads, enabling clients to ensure improved operational efficiency and reduction in both associated costs as well as carbon waste. Silpa Paul, who leads the global commercial vehicle research and consulting team at Frost & Sullivan, estimates that Convoy brought in $300 million last year and expects the company to have double-digit if not triple-digit growth in 2019. Information and opinions presented in the sections of the report were obtained or derived from sources Sacra believes are reliable, but Sacra makes no representation as to their accuracy or completeness. The machine learning investments weve made in automatedbrokeringandasset rebalancingare the foundation to managing the mixed fleets of the future.. And that was big-time growth, given the average . Revenue growth is a key performance indicator expressed as a percentage, representing how able your company is to grow its revenue over a period. We'll email you when new articles are published on this topic. Weve got a lot of people who are excited about taking blank whiteboards and turning them into incredible value for customers. One inefficiency is just finding the truck. Truck drivers download Convoys free app to find work without going through brokers who typically use emails and phone calls. Independent truckers and small companies make up a majority of U.S. freight carriers and are Convoys target market. We think thats very important for our business, Lewis said. Theres a very clear path to doing that in trucking.. Ameet Shah is a partner at Golden Ventures. Track all of GeekWires in-depth startup coverage: Sign up for the weekly startup email newsletter; check out the GeekWire funding tracker and venture capital directory; and follow our startup news headlines. However, the scope for switching revenue to recurrent taxes on immovable property is limited in most countries both because these taxes are currently . ', That was the story two years ago, said Lewis, who started Convoy with CTO Grant Goodale after they left Amazon in 2015. All business leaders have cost benchmarks. A typical company grew at a measly 2.8 percent per year during the ten years preceding COVID-19, and only one in eight recorded growth rates of more than 10 percent per year. Startups certainly have disrupted the market, but they will need to work hard to maintain their competitive position, he said. They started the company by hanging out at truck stops and getting kicked out of warehouses as they did market research when Convoy was just a kernel of an idea. Uber expects its Freight arm to generate positive adjusted EBITDA in 2022. 2023 PitchBook. Convoy Convoy, a Seattle-based digital freight booker backed by Bill Gates, Jeff Bezos and Al Gore's Generation Investment Management, closed a $400 million funding round to expand use of its. Doing Business As: Convoy Company Description: Key Principal: Daniel Lewis See more contacts Industry: Brokers, shipping , Computer software development and applications Printer Friendly View Address: 1301 2ND Ave Ste 1300 Seattle, WA, 98101-3805 United States See other locations Phone: Website: www.convoy.com Employees (this site): Modelled Over the past 15 years, companies that expanded in ways that maintained or increased their exposure to fast-growing, profitable segments generated one to two percentage points of additional TSR annually. Then develop a coherent set of growth pathways that encompass as many of the rules as possible. This time frame could refer to a monthly, quarterly, semi-annual, or yearly period, depending on how often you want to calculate said growth. The line of credit came from J.P. Morgan. Remote). Convoy's pitch for sustainable efficiency has won over an impressive cohort of investors. I know thats differentiated us.. We used a simple measure: industries are similar if they often appear together in corporate portfolios (for example, cable and satellite together with broadcasting, or aerospace and defense with industrial machinery). Lewis sees a lot of room for growth, given that more than 90% of heavy trucking is still booked using traditional methods. Convoy made $750M in 2021, growing 50% annually. Convoy's latest post-money valuation is from April 2022. than 70percent of its revenue. Convoy hooked truck drivers with an app to easily find jobs and get paid quickly. Gavin, a former general manager at Microsoft and Amazon, said thats a point of pride for the company. convoy revenue growthsvetlana invitational 2022 Consultation Request a Free Consultation Now. This beacon estimates the actual impact a charity has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact. Carriers also get a fuel card that gets them discounts at certain gas stations and deals on used trucks/trailers, roadside assistance, and spare parts. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Headquarters 34 Genthiner Strae, Berlin, Berlin, 10785, Germany Phone Number +49 3031197072 Website www.sennder.com Revenue $293.9M Industry Freight & Logistics Services Transportation sennder's Social Media Is this data correct? A home improvement retailer achieved its growth in a category that grew at 3 percent annually, and the company generated annual TSR of 17 percent. Transfix is an online freight marketplace that connects shippers and carriers for booking truck loading spaces and tracking shipments. We have that cultural mindset from an innovation perspective. Our sample consisted of the 5,000 largest publicly listed companies by revenue globally in 2019. by Taylor Soper on April 21, 2022 at 2:00 amApril 21, 2022 at 7:36 am. By automating load matching and allowing carriers to see all available freight at any given time, Convoy shrinks empty miles and wasted hours while boosting profitable hours for truckers. Convoys core thesis is to replace this inefficient manual matchmaking with algorithmic matchmaking. The company also arranges more precise drop-off and pickup times to ensure truck drivers are not waiting around warehouse loading zones for hours and can be back in service sooner. Numerically, it becomes: ($100,000 - $96,000) / $96,000. Here's the equation: We are now at this place where weve got the automation, weve got the technology underpinnings, Gavin said. Convoy got a shot in the arm in 2021, as COVID strained the supply chain and even the largest truckers were running out of trucks, forcing enterprise shippers to shift their loads to digital marketplaces like Convoy to access the long-tail of carriers to ship their load. We believe it is a proximate measure of whether a company is a natural (or best) ownerof an asset and thus able to generate optimal value from owning or operating the business. Convoy has raised $930M from T. Rowe Price, Greylock, Baillie Gifford, and Y Combinator. Finally, doing many small deals enables companies to gain access to new markets or consolidate fragmented ones without the risk of betting the house.. Meet the 2021 CNBC Disruptor 50 companies, Why Robinhood is No. But examples of this strategy abound. That caused an uptick in the number of smaller trucking companies to meet the demand. Sep 2022 - Feb 20236 months. . Drivers are getting paid less and more than 600 carriers went out of business in the first half of 2019, up from 175 in the same period last year, The Wall Street Journal reported. Convoys primary verticals are consumer-packaged goods; food and beverage; manufacturing and industrials; and retail/wholesale. A sports apparel company, in contrast, was outpaced in growth by its segment peers by one percentage point annually, and its shareholder returns were more lackluster at 1 percent per annum. If you would like information about this content we will be happy to work with you. Taxes on residential property are likely to be best for growth. Join the Sacra community and get private markets research and data straight to your inbox. Cofounder Lewis, a former Amazon executive with an extensive background in logistics, sees huge potential for boosting the efficiency of an industry that remains more reliant on Rolodexes and telephones than data science. Private Facebook groups dedicated to the convoy have also seen fast growth, with the main group collecting nearly 150,000 members since it started two weeks ago. Privately held Convoy doesnt disclose revenue numbers or share details of how many loads its carrying per week or annually, though customers include Anheuser-Busch, Unilever and Proctor & Gamble. Get this delivered to your inbox, and more info about our products and services. First, practice makes perfect: programmatic acquirers build organizational capabilities and establish best practices across all stages of the M&A process, from strategy and sourcing to due diligence and integration planning. 2018 Series D. Transfix raised a Series D of $50M at a $800M valuation in December 2018. But the bar is highfewer than half of the companies in our sample excelled at more than three of the ten rules, and only 8 percent mastered more than five (Exhibit 2). The company has rolled out various new features over the past few years, including: Convoys core thesis is that it can increase earnings for truck drivers while simultaneously reducing cost for shippers by removing inefficiencies in the existing supply chain, and helping reduce emissions in the process. by Taylor Soper on November 13, 2019 at 3:00 amNovember 13, 2019 at 12:44 pm. Have a scoop that you'd like GeekWire to cover? These include recent offerings such as Convoy for Brokers where we've opened up essentially access to our capacity platform, access to the 400,000 trucks, to traditional (freight) brokers.. For example, one Australian conglomerate has consistently divested less attractive parts of its portfolio, such as insurance, and put the proceeds into growth opportunities. This pattern of digitization has played out in nearly every other industry, and its happening in trucking right now, Convoy CEO Dan Lewis wrote in a blog post. As the supply of trucking companies grew, Convoy signed up other large shippers on those routes and then expanded outwards to more shippers nationwide. We studied the performance of these companies from 2005 to 2019, the 15 years prior to the COVID-19 crisis. Get the full list, Morningstar Institutional Equity Research. A typical company grew at a measly 2.8 percent per year during the ten years preceding COVID-19, and only one in eight recorded growth rates of more than 10 percent per year (Exhibit 1). Seattle, Washington, United States 1001-5000 Debt Financing Private convoy.com 6,826 Highlights Total Funding Amount $1.1B Contacts 647 Employee Profiles 17 Investors 50 Similar Companies 205 Find More Contacts for Convoy Among companies that grew predominantly organically, the rate was even lower, at one in four. Uber Freight generated $1.08 billion in Q4, up 245% year-over-year, which was buoyed by the acquisition of logistics giant Transplace. The construction industry is full of challenges, from product selection and design questions to delivery and finance. Generations investment in Convoy is grounded in many years of research into the future of logistics, Joy Tuffield, partner at Generation Investment Management, said in a statement. With hefty brokerage fees that correspond to the high labor demands of the task, the trucking industry has a costly problem that Convoy is using technology to solve. Since its founding in 2015, Convoy has grown to handle tens of thousands of loads per week, booked using its app that matches shippers and truck operators. Our sample consisted of the 5,000 largest publicly listed companies by revenue globally in 2019. It just has more people doing the same thing with the same level of efficiency.. As Lewis begins talking about Convoys latest funding round announced Wednesday a $400 million cash infusion raised at a $2.7 billion valuation he points at one in particular: Earn it through results. Robinson at 0.5x, J.B.Hunt at 1.5x, and Schneider at 0.8x. Industry (along with moves up and down the value chain) is only one aspect of the where to grow issue. Convoy is a managed marketplace that matches shippers with truck companies to facilitate freight movement. 2. BERLIN (Reuters) - Digital freight startup Sennder said on Thursday it had raised $160 million from investors, valuing the six-year-old business at more than $1 billion, and would . However, earnings can't grow without revenue growth, so it's important to look at revenue growth first, as some growth stocks can double without any profits. Our focus is on giving truck drivers more efficient runs so they can make more money overall, Lewis said. It is classified as operating in the Local Freight Trucking industry. What are partner loads and how do carriers book them? But thats more of an industry issue versus something specific to Convoy or an individual broker, said Paul. Finally, instill the capabilities and operating model to execute with excellence. But suppose you dont have this consistent growth engine? An extra five percentage points of revenue per year correlates with an . Transfix's Profile, Revenue and Employees. With its latest round, the biggest in Convoys history, that company has now raised a total of $668 million and tells Forbes its estimated valuation has grown to $2.75 billion. Convoy has raised a whopping $668 million since launching in 2015 and is also backed by the likes of Microsoft co-founder Bill Gates; Amazon founder Jeff Bezos; Expedia Chairman Barry Diller; Salesforce CEO Marc Benioff; Code.org founders Hadi and Ali Partovi; former Starbucks president Howard Behar; U2s Bono and The Edge; among others. The industry must consolidate on a much larger scale before the largest players feel market share pressure from their peers. By contrast, Convoys network has thousands of trucks available to be booked and optimizes for those best-positioned to pick up and drop off loads and to stitch together two, three or even more loads in a single offer that dramatically reduces empty miles, Lewis said. Firms that managed to grow faster and more profitably than their peers during our study period did even better, generating shareholder returns six percentage points above their industry averages. The startup makes money by keeping a percentage of each transaction made via its marketplace. The influence of COVID-19 and the Russia-Ukraine War were considered while estimating market sizes. The largest U.S. freight broker, C.H. The company recently joined The Climate Pledge, co-founded by Amazon, to reach net-zero carbon emissions by 2040. Note: Size of the bubble indicates valuation. Excluding the credit line, its raised $925 million to date and now has a $3.8 billion valuation. Convoy revenue was up about 42% in 2020, putting the organization in line with 9% of survey respondents reporting an increase between 26% and 50%. This report focuses on the global Freight Broker Software status, future forecast, growth opportunity, key market and key players. Since May 2017, Uber Freight has contracted with more than 50,000 carriers and served more than 1,000 shippers. After extensive research and analysis, Zippia's data science team found the following key financial metrics. McKinsey_Website_Accessibility@mckinsey.com. In building an online freight marketplace, Convoy has had to solve four key industry frictions: (1) a highly fragmented market, (2) complex supply and demand matching requirements, (3) an industry-wide driver shortage, and (4) opaque and highly volatile truck-prices and capacity. I follow technology-driven changes that are reshaping transportation. When we compared our samples performance in the first half of the last decade with the second half, only one in threecompanies that were in the top quartile of growth between 2009 and 2014 managed to maintain that rate in the subsequent five-year period. I follow technology-driven changes that are reshaping transportation. It is expected to make $1B in 2022, growing 35% annually since 2018, while the North American logistics market grew by 20% in the same period. Convoy says it has 400,000 truckers using its smartphone app. The proof is in the pudding, as they say, Lewis said. Analysts can review the sales of successive quarterly periods or the quarter of one year compared to. For ABC Company, that's: (January 2023 Revenue - December 2022 Revenue) / December 2022 Revenue. As a trucking broker gets bigger, traditionally it doesnt get more efficient. Sacra accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to Sacra. Outgrowing your industry implies a strong business modelan advantage rewarded by capital markets whether youre in a fast- or slow-growing industry. Never miss an insight. The startup makes money by keeping a percentage of each transaction. For all of 2022, laptop and desktop sales were down about 16% compared to 2021, according to all the three reports. Corporate growth slowed dramatically after the global financial crisis, with the worlds largest companies growing at half the rate they did before 2008. Currently, about35% of all truck miles logged in the U.S. are empty miles and result in 72 million metric tons of carbon emissions a year, the company says, citing Environmental Protection Agency data. The case of a high-performing European manufacturer of agricultural and municipal vehicles illustrates the benefit of venturing abroad from a strong home base. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution. I dont just expect them to succeed the stats say, they are succeeding, Paul told GeekWire. Get the full list, Youre viewing 5 of 17 executive team members. The research reaffirmed that revenue growth is a critical driver of corporate performance. The Revenue Growth Rate provides a solid indicator of how quickly your startup is growing. Rivals include Seattle-based Convoy Inc., whose investors include funds backed by Microsoft Corp. founder Bill Gates and Amazon.com Inc. founder Jeff Bezos . Furthermore, increases in capital investments outstripped revenue expansion, compressing returns. Founded in 2015, Flexport has managed to amass a valuation of $8.1 billion. The key players covered in this study GoComet Companies that grew into adjacent industries generated, on average, an extra 1.5 percentage points per year of shareholder returns above their industry peers. Subscribe to GeekWire's free newsletters to catch every headline, Photos: Seattle Sounders fans celebrate teams second MLS Cup victory with march and rally. Convoy offers basic financial services like a fuel card and invoice factoring with free same or next-day payment to carriers and recently added a paid Quick Pay service to get the payment in 8 hours at a 1.5% transaction fee. Got a confidential news tip? While the company is not yet profitable, its a goal. per year over the period of our analysis. Convoy is one of a handful of Seattle startups valued at more than $1 billion, or "unicorns." The latest investment included a $160 million equity round led by Baillie Gifford and accounts. Lawrence said he saw a run from Seattle across the state to Spokane go from $1,200 to $900 in a matter of a few months. It is classified as operating in the Long Distance Freight Trucking industry. You can never really turn that entrepreneurial spirit off.. SIGN UP for our weekly, original newsletter that goes beyond the list, offering a closer look at CNBC Disruptor 50 companies, and the founders who continue to innovate across every sector of the economy. A typical company grew at a measly 2.8percent per year during the ten years preceding COVID-19, and only one in eight recorded growth rates of more than 10 percent per year. Lewis said rates are variable depending on location and capacity of a freighter and that Convoys technology can help carriers reduce cost by driving fewer empty miles, spend less time waiting to get loaded and unloaded, and have more convenient appointment times. See the metrics below for more information. The results are there and were leaning into the business model.. The spare bedroom suddenly becomes a revenue source that offsets a monthly mortgage. warehousing), their customs brokerage, shipment insurance as well as trade financing offers. Defined as the largest region in the portfolio by revenue. This makes it difficult for shippers to find carriers directly, and they rely on 17,000+ brokers to match loads with carriers who charge 15% to 20% per transaction. Convoy can layer more products and create a Toast for brokers that helps them better manage their operations. Many management teams feel pressure to deliver consistent growth, which is understandable: the 10 percent of companies in our sample that grew for seven of the ten years between 2010 and the end of 2019 strongly outperformed their peers. Today truck brokerages and large carriers have pretty significant teams of people whose job is to call around and find a truck, typically relying on a list of a hundred or so drivers theyre familiar with, Lewis, 38, tells Forbes. Convoy's annual revenues are $100-$500 million (see exact revenue data) and has 500-1,000 employees. Remote). Companies that expanded internationally generated 1.9 percentage points more annual TSR than their industry peers, but those with healthy growth in their home markets benefited more than those merely treading water at home.