Rivals include Seattle-based Convoy Inc., whose investors include funds backed by Microsoft Corp. founder Bill Gates and Amazon.com Inc. founder Jeff Bezos . It grew ~3x from 2018 to 2020 by offering enterprise customers take rates as low as 1%, undercutting its competitors. Gross revenues in the domestic transportation management segment that includes freight brokers hit $139 billion last year, up 52.4% from 2020, according to Evan Armstrong, president of Armstrong &. I have. The key global companies of Truck Fuel Card include Fuelman, Comdata, ExxonMobil, Shell, Convoy, CEFCO, Universal Premium, Coast and WEX, etc. 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. 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. Its shareholders have been handsomely rewarded, with a TSR of more than 10 percent per year from 2009 to 2019. how much does an ambulance weigh; pisces sun scorpio moon personality; liuna annuity withdrawal; mercy lewis role in the crucible; A series of fortunate events July 20, 2020. convoy revenue growthsvetlana invitational 2022 Consultation Request a Free Consultation Now. There was little overlap between Diageos core business and Pillsburys, while Pillsburys and General Mills businesses share many of the same competencies and assets. This dichotomy reflects the influence of acquisitions and divestitures, as well as portfolio choicesthat is, varying degrees of exposure to segments with different rates of growth. Growth Rate (y/y) 33% 2022 Funding $930.00M 2022 Revenue Click here to access our Convoy dataset. Only one in six of the companies in our data set with core-segment growth rates below their industry median managed to achieve overall corporate growth rates above those of their peers. by Taylor Soper on November 13, 2019 at 3:00 amNovember 13, 2019 at 12:44 pm. Industry (along with moves up and down the value chain) is only one aspect of the where to grow issue. 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. 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. And its Amazon that is largely responsible for changing consumer buying behavior and elevating the importance of supply chains as a result. Convoy was founded in 2015. It currently has 400,000 trucks in its network. 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. 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. Convoy International The other side. McKinsey_Website_Accessibility@mckinsey.com. Its last private valuation was $3.8B, with a 2021 revenue multiple of 5x, while publicly traded trucking companies have lower revenue multiples, with C.H. An extra five percentage points of revenue per year correlates with an additional three to four percentage points of total shareholder returns (TSR)the equivalent of increasing market capitalization by 33 to 45percent over a decade. When developing a growth strategy, often the first question on a CEOs mind is, Where should that growth come from? To help find the answer, we categorized revenue increases among our sample companies into growth within the core industry (their largest industry segments at the start of the study period), in secondary industries (smaller but still significant revenue contributors in the first year of our time frame), and in new industries (segments where the companies did not initially have a presence). . Promoted articles. See the metrics below for more information. Revenue: +70m Investment Date: April 2017 Business overview Alpega is a leading logistics software company that offers end-to-end solutions covering all transport needs. To understand how organizations can try to overcome these obstacles, we studied the growth patterns of the sample companies through various lenses. Shippers also get a dashboard to track their orders live, see ETAs, get delay alerts and run analytics on historical data. convoy revenue growth. The management team used this advantage to expand the store network from approximately 900 locations that year to more than 1,500 in 2019. Operator of a digital freight network intended to transport truckloads. The Dow Jones Transportation Average, which tracks 20 large US logistics companies, hit an all-time high of 16,733 on Nov 4, 2021, but is down 20% since then, compared with a 17% decline in S&P 500 over the same period. 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. For example, a department store chain had a business modelbrand-name bargains in stores with low inventories and coststhat in 2007 delivered 5 percent higher ROIC than its cost of capital. Have a scoop that you'd like GeekWire to cover? 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. Like other contractor management portals such as Deel and Upwork, Convoy can layer more financial services such as an Uber-like debit card, insurance, and working capital loans to the carriers. If you would like information about this content we will be happy to work with you. by Taylor Soper on April 21, 2022 at 2:00 amApril 21, 2022 at 7:36 am. By replacing reps with algorithms, Convoy operates at lower costs allowing it to take a lower take rate than traditional brokers, leverage this low fee to attract shippers, and use the increased load volume to sign up more carriers, creating a flywheel effect. Today, many companies with legacy business models are using programmatic M&A to both digitizeand enlarge their businesses. To succeed at international expansion, its critical to have a clear source of competitive advantage that is transferable across regions. Founders: Dan Lewis (CEO), Grant GoodaleLaunched:2015Headquarters:SeattleFunding: $668 millionValuation: $2.7 billionKey technologies: Artificial intelligence, cloud computing, deep learning, Internet of Things, machine learningIndustry: LogisticsPrevious appearances on Disruptor 50 List: 2 (No. The research reaffirmed that revenue growth is a critical driver of corporate performance. 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%. 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. Subscribed to {PRACTICE_NAME} email alerts. Convoy operates in a fragmented market and competes with companies that operate owned trucks like DB Schenker ($23B) and Schneider ($4.3B), large traditional brokers like C.H. 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 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. Since we structure SaaS loans based primarily on revenue growth and the available amount of capital is driven off of multiples of MRR or ARR, the total borrowable funds can increase as revenue grows or key metrics improve. Convoy believes it can increase earnings for truck drivers while simultaneously reducing cost for shippers by removing inefficiencies in the existing supply chain, as seen in the flywheel below. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution. This age-old axiom holds especially true today as the acceleration of pre-COVID-19 trendswidens the gap between corporate winners and laggards. Got a confidential news tip? The $800 billion U.S. trucking industry is massive, but Convoy does face stiff competition. Our findings suggest ten imperatives that should guide organizations seeking to outgrow and outearn their peers. 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 . The largest U.S. freight broker, C.H. Convoy's Annual Report & Profile shows critical firmographic facts: The key players covered in this study GoComet 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. Convoy's latest funding round was a Line of Credit for $150M on April 21, 2022. Convoy, founded in 2015, connects freight shippers and carriers. As the supply of trucking companies grew, Convoy signed up other large shippers on those routes and then expanded outwards to more shippers nationwide. Get the full list, Youre viewing 5 of 17 executive team members. Shippers can add new loads to Convoy through their portal (primarily used by SMBs) or by integrating it with their transport management software (used mostly by enterprise shippers). This includes uploading invoices and other delivery-related documents, receiving payments and keeping track of past payments, tracking the live location of their fleet, and route planning. The spare bedroom suddenly becomes a revenue source that offsets a monthly mortgage. 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. 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. The line of credit came from J.P. Morgan. Companies that grew into adjacent industries generated, on average, an extra 1.5 percentage points per year of shareholder returns above their industry peers. 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). Convoy's pitch for sustainable efficiency has won over an impressive cohort of investors. Its the largest funding round for a Pacific Northwest company in more than a decade and comes on the heels of Convoys $185 million Series C round in September 2018 that valued the company at more than $1 billion. But suppose you dont have this consistent growth engine? 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. That is Convoys mission.. Hes just come out of a big meeting with one of the top 10 shippers in the world. Convoy mentions that its profitable on a per-transaction basis. Information, opinions and estimates contained in this report reflect a determination at its original date of publication by Sacra and are subject to change without notice. The company's technology allows carriers to bid on loads through an app, and it aims to help shippers with costs and supply chain. 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. Personalize which data points you want to see and create visualizations instantly. But regardless of how many brokers a carrier uses, that carrier still won't see all of the freight space currently available. 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. Why are so many SaaS founders taking money from Founderpath.com instead of VC`s? Why does similarity matter so much? Convoy Fast Facts Note: Revenues for privately held companies are statistical evaluations. Generation also led a massive round for fellow Seattle startup Remitly this past July. Several of Convoys services, such as its drop-and-hook marketplace Convoy Go, saw a surge in demand over the past two years as shippers dealt with market unpredictability. Their main source of income comes from the fees of transporting goods. 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 . All material presented in this report, unless specifically indicated otherwise is under copyright to Sacra. 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. Convoy Headquarters 1301 2nd Ave. Ste 1300 Seattle, Washington98101 1-424-214-1769 Driving Directions Convoy Summary ABOUT Overview Convoy is a Washington-based digital freight network that connects shippers and carriers for booking shipments and moving truckloads. As a trucking broker gets bigger, traditionally it doesnt get more efficient. PRINCETON, N.J., February 28, 2023--Enterra Solutions, LLC, a leader in autonomous value chain optimization and decision-making solutions, today announced that the Enterra Revenue Growth . Take the telecommunications services industry, which grew at 1.6 percent Convoy gets the benefit of additional load for its carriers, access to data for shipping routes managed by these brokers, and incremental revenue by capturing net new transactions. Revenue growth is a key performance indicator expressed as a percentage, representing how able your company is to grow its revenue over a period. (Annual sales and employees) What industry is the company in? To help our clients identify these pathways, we conducted an in-depth study of the growth patterns and performance of the worlds 5,000 largest public companies over the past 15 years. Take the example of General Mills purchase of Pillsbury from Diageo. The pandemic-driven lockdowns created mismatches in freight flows, which sent huge amounts of freight to the on-demand spot market, said Avery Vise, vice president of trucking at FTR Transportation Intelligence. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of Sacra. Past investors include Greylock Partners, Y Combinator, Gates Cascade Investment, Salesforce.coms CEO Marc Benioff, U2s Bono and The Edge and Bezos Bezos Expeditions fund. Convoys primary verticals are consumer-packaged goods; food and beverage; manufacturing and industrials; and retail/wholesale. Furthermore, increases in capital investments outstripped revenue expansion, compressing returns. Amazon ( AMZN -0.04%), for example . 1 PitchBooks comparison feature gives you a side-by-side look at key metrics for similar companies. per year over the period of our analysis. 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. 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. Other revenue streams include storing goods (i.e. I dont just expect them to succeed the stats say, they are succeeding, Paul told GeekWire. McKinseys long-standing research into M&A strategieshas repeatedly reaffirmed that it is not the total value of transactions but the deal pattern that drives shareholder returns. On the other hand, when a European grocer that struggled in its home market expanded aggressively into Latin America, its TSR trailed that of its peers by seven percentage points per annum over the subsequent decade. The Organization's Mission We build technology to find smarter ways to connect shippers with carriers while solving some of the toughest problems that result in waste in the freight industry. Convoy says that creates big cost savings for trucking companies through better utilization of their fleets and even cuts fuel use by reducing idling time or empty trips, which in turn means lower exhaust emissions. We spoke with Ameet because Golden Ventures invests at the intersection of two increasingly important trends: 1) embedded finance and marketplaces building "X Capital" products using their datasets, and 2) fintech scaling vertical SaaS (as with companies like Faire building CRM, chat, etc.) 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Theres a lot of Amazon DNA in Convoy, from the cultural principals to focusing on the customer. EX -> CX -> revenue growth. We'll help you find what you need Together, these segments now account for approximately 75 percent of the companys total revenue, and its growth exceeded that of its peers by 2.4 percentage points per year. Convoy's annual revenues are $10-$50 million (see exact revenue data) and has 10-100 employees. This report focuses on the global Freight Broker Software status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Freight Broker Software development in North America, Europe, China, Japan, Southeast Asia, India and Central & South America. Finally, instill the capabilities and operating model to execute with excellence. 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. Last year's decline was somewhat cushioned by a nearly historic year in PC . This value could derive from synergies with other businesses the company owns, distinctive technical or managerial capabilities, proprietary insights, or privileged access to capital or talent.