Convoy Inc., a trucking startup based in Seattle and backed by investors like Jeff Bezos and Bill Gates, is set to reduce its workforce by hundreds of employees in the upcoming days. This strategic move is part of their plan to attract potential buyers. The company, previously hailed as the “Uber for trucking,” has already downsized its workforce from a peak of 1,500 employees to around 500. Financially, it was on the verge of running out of funds within a few weeks, according to insiders. The majority of the remaining staff will be laid off to enhance Convoy’s appeal to potential acquirers, particularly well-established companies in the trucking industry that Convoy aimed to disrupt. Additionally, other interested parties, such as Walmart Inc. and A.P. Moller-Maersk A/S, are less actively involved in the current negotiations, as stated by an anonymous source due to lack of authorization to disclose this information.
On October 18, Convoy sent an email to its customers, causing concern by announcing that they were unable to process any new orders. Additionally, they advised customers to cancel any existing orders scheduled for pickup within the next three days. Bloomberg had the opportunity to review this email communication from Convoy’s sales team.
A representative for Convoy stated that the company is currently undergoing a transitional phase and assured that they will provide further details within the next two days.
