Flexport Offloads Convoy’s Technology After Two Years
Flexport has sold the technology it acquired from Convoy, the former freight unicorn just two years after purchasing it. As a result this move marks a significant shift in Flexport’s strategy and raises questions about the long term value of Convoy’s assets.
Acquisition and Integration
In 2022 Flexport made headlines when it acquired Convoy’s technology platform. The acquisition aimed to bolster Flexport’s capabilities in freight management and logistics. At the time industry experts viewed the deal as a strategic move to enhance Flexport’s market position. However integrating Convoy’s technology proved more challenging than anticipated.
Reasons for the Sale
Several factors may have contributed to Flexport‘s decision to sell Convoy’s tech:
- Integration Difficulties: As with many tech acquisitions, the complexities of merging two different technology stacks can be substantial often leading to unexpected delays compatibility issues, and increased resource demands.
- Changing Market Conditions: The freight industry has experienced significant volatility in recent years, forcing companies to constantly adapt their business strategies.
- Strategic Realignment: Flexport may have shifted its focus to other core areas of its business.
Impact on the Industry
Flexport acquired the technology stack from Convoy in November 2023. Then less than two years later it sold that technology to DAT in mid 2025.
Strategic Technology Shift
First, Flexport bought Convoy’s assets and intellectual property after Convoy abruptly shut down in October 2023, amid a freight recession and funding issues.. Then Flexport retained only the tech and a small team no liabilities or operating business GeekWireLocate2u. Then, it relaunched the Convoy platform in early 2024, targeting small carriers and brokers through its digital freight matching service.
Flexport’s Strategic Pivot
Flexport viewed Convoy’s network 400,000 drivers and 80,000 carriers as a key competitive advantage. Therefore it integrated this capacity into its broader logistics offering to become a one stop shop for global truckload services including FTL LTL drayage cartage and eventually intermodal trucking. Moreover it avoided Convoy’s previous scale focused model along with its complexity and high burn and instead prioritized operational discipline and profitability.
The DAT Deal: A New Chapter
Just yesterday DAT agreed to acquire the Convoy Platform from Flexport. The deal adds powerful automation and digital freight matching tools to DAT’s portfolio. Flexport had launched the platform to all brokers in April 2024 . Now DAT plans to integrate the platform into its DAT One system, offering carriers quick load access fraud protection, and improved booking efficiency .
What It Illustrates
This sequence from acquisition to resale highlights the fast-moving innovation dynamics in logistics technology. In today’s environment startups and incumbents must align strategy scale judiciously, and adapt swiftly that’s the new normal. As a result, while startups rise established players like Flexport and DAT are pivoting to capitalize on tech and team assets. Ultimately it underscores how critical it is to match acquisitions with strategic intent and execution capabilities.
