Seattle trucking marketplace startup Convoy reportedly hired an investment bank in recent months and is weighing different options including a potential sale of the company, according to a report Thursday by The Information.
The company engaged the bank after receiving interest from potential “suitors” in the logistics sector over the past year, The Information reported, citing unnamed sources. Other options include a potential merger or a large investment from a strategic investor, according to The Information.
Convoy declined to comment when contacted by GeekWire.
The move comes as Convoy has gone through multiple rounds of layoffs within the past year amid a shaky trucking market.
In an interview with GeekWire in June, Convoy CEO Dan Lewis said the trucking market was in a recession, citing an increase in the number of truck drivers that weakened demand.
By exploring various M&A options, Convoy wants to increase volume on its platform, helping the company reach profitability, The Information reported.
Founded in 2015 and backed by the likes of Bill Gates and Jeff Bezos, Convoy aims to increase earnings for truck drivers while reducing cost for shippers by removing inefficiencies in the supply chain. Truck drivers download Convoy’s free app to find work without going through brokers who typically use emails and phone calls.
Convoy has grown to become one of the highest-valued privately held startups in the Seattle region. It raised $260 million at a $3.8 billion valuation last year. The company is ranked No. 3 on the GeekWire 200, our list of the top startups in the Pacific Northwest.
Convoy most recently laid off staff in June. The company previously made layoffs in February and closed its Atlanta office, which opened in 2019. Last year, the company conducted layoffs in October and June.
Co-founder Grant Goodale announced in June that he would step down from his position as chief experience officer and transition to an advisory role.
