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Does freight logistics require a one - stop store ? That ’s Flexport ’s take , and perhaps that ’s one of the reasons why Convoy did n’t work out ; however , it might be too early for this approach shot in Latin America . On a unlike note , investors still seem unforced to confirm startups that help oneself mass drink less alcohol , as long as there ’s AI involved .
Lessons to learn?
Entrepreneurs often write postmortems after shutting down or trade their fellowship , but it is less common for these lessons to be drawn by their acquirer as well . Yet , that ’s what happened to Convoy , a failed digital freight unicornwhose tech backbone — include a few squad members — is being win by Flexport .
Flexport acquires engineering science of former digital freight unicorn Convoy
In amemoquoted by FreightWaves , Flexport CEO Ryan Petersen made it clear that while he was great on buying Convoy because of the “ incredible tech raft ” it built , he was not grease one’s palms its scheme .
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“ Our strategy for the trucking business unit will be very different from Convoy ’s or other large truck brokerages who have focused on driving immense exfoliation by pursuing the prominent Fortune 500 FTL accounts , ” Petersen compose . ( Full truckload , or FTL , is a merchant vessels modality in which a motortruck ’s journey is earmark for one shipment only . )
Petersen has a theory as to what can go wrong with this approach , especially now . “ With that exfoliation came complexity and cauterise , and in a highly competitive market with dispirited barriers to entry , even with all of Convoy ’s incredible technical school , they were not able to reach the weighing machine required to turn a net profit . Their operating position was made much worse by the current lading recession . ”
In a LinkedIn comment before the Flexport deal became news , Convoy CEO Dan Lewissaidthe society had prospective vendee , but “ a freightage recession add to burn and weaken our suitor play a role ” in ultimately making it impossible for the company to fully sell itself on sentence .
Unlike premature suitors may have , Flexport is n’t purchase Convoy ’s concern or liabilities . Neither will it rescue most of itslaid - off staff . It is unclear exactly how many former Convoy employees Flexport is hiring , but it will be a little number , and even smaller than some had hoped .
“ For two brusk week after the Convoy collapse and associated layoff , I was one of the 20 software engineersselected to be on the passage squad . However , towards the end of the deal - making process with Flexport , Convoy Go ( our Drop & Hook program ) was not take a desirable plus in the attainment and my squad was left out , ” former Convoy employee Neha Deshpande bring out .
recapitulate therecent contextat Flexport , my colleague Rebecca Bellan help me understand why the society was showing constraint and not rent all useable talent :
When Petersen take back the chief executive officer title in October after hissuccessor was push out , the administrator ’s big substance was about nonplus Flexport ’s finance back in orderliness . He had pick apart former CEO Dave Clark for overspend on hiring and elaboration . Since abuse back into the CEO purpose , Petersen has overseen a plan of cost cutting , includinglaying off about 20 % of its workers , or around 600 people .
Flexport kick off restructuring with layoff
Why get at buy Convoy at all , then ? Per Petersen ’s memo : “ We have heard from our customers that they require Flexport to be a one - stop shop class for all their logistics needs . ”
While there is some spending involved , offer up a full range of trucking services to customers could be a winning strategy . As Rebecca noted : “ With [ its ] price cutting off also issue forth a need for Flexport to claw its way back to gainfulness , and offering a good servicing is one way to do that . ”
But I am no freight expert , so I reached out to one : Luis Fernando Ortiz , the Bolivian entrepreneur who runsDeltaX , one of theLatin American freight - forwarding startupsI write about in 2022 .
Why Latin America ’s freight - send on chance is still attracting capital
In his position , not prosecute solely the Fortune 500 FTL account has pros and bunco game . “ The strategy of direct intermediate or modest businesses / shipper makes sense to radiate the portfolio and improve flagrant margin , but on the other helping hand it represents an operational risk that can damage the carrier wave ’ experience due to the low degree of operation standardization that company / shippers have in those section , which results in hold or cancellations for the carrier , ” Ortiz told me ( translation mine ) .
Would a one - break - shop strategy like Flexport ’s be a fit for Latin America , too ? For Ortiz , this approach prepare sense in his area as well , but in a second phase that has n’t start yet . “ At the here and now , most of the players like DeltaX are still focused on building the technology and liquidity of cargo and trucks , to later optimize by type of customer , commodities or routes . ”
If Flexport sincerely wants to let its client “ ship any product , in any quantity , between any two places in the world , ” more acquisitions may finally be in purchase order — beyond North America , and beyond tech lot . But that will in all likelihood have to wait until Petersen ’s company is back to lucrativeness .
Saving booze money
If you fear wake up up on Black Friday more hungover than you wished , you are not alone . Out of the 146 million U.S. adult who drink alcoholic beverage , 47 % want to cut back , according toSunnyside , a inauguration that promises to help mass lose weight their boozing “ with no pressure to throw in . ”
Also known as mindful drinking , this access is not design to treatalcohol use of goods and services disorder . However , Sunnyside call that while it focuses on small change , it brings benefits such as “ improved quietus , a healthier diet , money keep open and an overall improved sense of well - being . ”
for save money , exploiter will have to spend some ; Sunnyside ’s canonic subscription tier costs $ 99 per twelvemonth , a similar toll range to its competitorReframe , aY Combinator Summer 2021 alumthat also supports alcoholic beverage breathing in reduction . But Sunnyside suggests it ’s worth the cost , with contributor saving some $ 50 in their first calendar month of sign up up .
investor , too , seem to call up the value proposition makes sense : Sunnyside raisedan $ 11.5 million Series A round of funding , TechCrunch report . The financial backing will support the launching of Sunnyside ’s AI aware crapulence coach , ChatGPT - establish Sunny , which will generate testimonial for its human coaches .
Mindful crapulence app Sunnyside lands $ 11.5 M to launch its AI - power jitney
Reframe had fasten asimilarly sized roundin 2021 , but consider how much the marketplace has change since then , it is reassure to see that there is still capital usable for sobriety - sharpen bets with a dosage of AI . Let ’s hope it can help those who wish well to keep their drinking under control condition this vacation season , or underpin them through Dry(ish ) January .
