Get the full list, Youre viewing 5 of 17 executive team members. These are the 2021 CNBC Disruptor 50 companies, The 2021 CNBC Disruptor 50: How we chose the list of companies, Robinhood's disruptive force: The good, the bad and the controversy. All rights reserved. Ive never heard of anyone having a hard time with Convoy, he said this week. The research reaffirmed that revenue growth is a critical driver of corporate performance. On the other hand, SMB brokers don't have the talent or money to digitize their operations and are at risk of being replaced by digital marketplaces. Convoys other investors include Expedia Chairman Barry Diller; Salesforce CEO Marc Benioff; Code.org founders Hadi and Ali Partovi; former Starbucks president Howard Behar; U2s Bono and The Edge; among others. For example, industrial companies generated a full third of their growth from new industries, while utilities consolidated toward their core business areas more than other sectors. The company leveraged its equipments stellar reputation to expand into the United States, where it continued to generate market-beating returns. All rights reserved. Others may need to identify granular pockets with growth potential in their existing markets or new ones and reallocate resources to them from more stagnant segments. . Something went wrong. Theyre going to be there forever, he said. Convoy's platform, accessible via a smartphone app, uses machine learning to match carriers to loads and prevent trucks from driving "empty miles" with no loads. Convoy mentions that 100% of matching in its top markets is automated, with a matching time of a few minutes. Convoy, the digital freight network that connects truckers with shippers, has raised $400 million in a Series D funding round as it aims to scale its business amid an increasingly competitive. Furthermore, companies that manage to win market share away from competitors are likely to beat the growth expectations reflected in their share price, unlocking even stronger returns. While some firms forgo profits for a time in pursuit of growth (with Amazon being perhaps the best known), the far more typical, and practical, approach is to establish a distinctive business model and then scale it. In the current funding scenario, with a sharp focus on profitability, this can become a challenge in raising future funds. 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. Hercules Capital SaaS Finance provides growth capital after Series B financing rounds, offering leverage on expensive . 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 (Exhibit 1). 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. Get the full list, Youre viewing 5 of 11 board members. 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. All business leaders have cost benchmarks. I know thats differentiated us.. After segmenting companies into four categories, our colleagues found that programmatic acquirersthose that did at least two small or medium-sized deals a year along the same themeoutperformed peers using other M&A approaches. Convoy's valuation in April 2022 was $3,800M. 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. It has a network of 400,000 trucks, and its enterprise customers include Home Depot, Procter & Gamble, Unilever, and Anheuser-Busch. A high return on invested capital (ROIC) indicates a business model powered by a competitive advantage. Statistically, the worst thing you can do is try to buy growth with a big bang acquisition. Operator of a digital freight network intended to transport truckloads. However, mastering the ten rules of value-creating growth is only one part of a holistic growth recipe. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you. 2017 Series C. Transfix raised a Series C of $42M at a $227M valuation in July 2017. Take the example of General Mills purchase of Pillsbury from Diageo. The spare bedroom suddenly becomes a revenue source that offsets a monthly mortgage. Fully considering the economic change by this health crisis, Roadway accounting for % of the Digital Freight Brokerage global market in 2021, is projected to value US$ million by 2028, growing at a revised % CAGR in the post-COVID-19 period. Prior to Convoy, Ryan served as . One inefficiency is just finding the truck. However, instead of charging a fixed percentage, it creates a price arbitrage between what a shipper is willing to pay and what a carrier expects as a fee and keeps the difference. Want a sandwich? asks the 38-year-old CEO as he grabs one himself and dips into an adjacent room overlooking Puget Sound and the Space Needle. This beacon estimates the actual impact a charity has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact. The study objectives are to present the Freight Broker Software development in North America, Europe, China, Japan, Southeast Asia, India and Central & South America. Convoy's latest funding round was a Line of Credit for $150M on April 21, 2022. 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. The key is not to confuse increasing scale with value-creating growth. by Taylor Soper on April 21, 2022 at 2:00 amApril 21, 2022 at 7:36 am. In November 2021, Convoy launched Convoy for Brokers, allowing brokers to post their loads through Convoys portal. A second group, dedicated to the . Convoy mentions that its profitable on a per-transaction basis. Revenue growth is a key performance indicator expressed as a percentage, representing how able your company is to grow its revenue over a period. Truck rates have come down significantly over the past year largely due to a capacity imbalance. Generation Investment Management, a London-based fund co-founded by former vice president Al Gore, led the Series D round. As the supply of trucking companies grew, Convoy signed up other large shippers on those routes and then expanded outwards to more shippers nationwide. Robinson, saw total revenue decline 10.2 percent to $3.9 billion in its most recent quarter. Convoy can layer more products and create a Toast for brokers that helps them better manage their operations. With its latest round, the biggest in Convoys history, that company has now raised a total of $668 million and tells Forbes its estimated valuation has grown to $2.75 billion. In fact, fewer than one in five of the companies in our sample that had below-median growth rates in their local region managed to outgrow their peers. But he had nothing bad to say about Convoy. There are a bevy of similar companies aiming to take market share of a digital freight brokerage industry that could reach $54.2 billion by 2025, according to Frost & Sullivan. 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. Founded in 2015 by Dan Lewis and Grant Goodale, both Amazon alumni, Convoy took a technology-first approach to the problems of waste in the logistics industry and inefficiencies in the supply chain. If you would like information about this content we will be happy to work with you. Industry (along with moves up and down the value chain) is only one aspect of the where to grow issue. Investors are bullish about Convoys digital platform that facilitates transactions between trucking companies and shippers, despite some headwind in the form of a recent trucking recession and fierce competition from Uber Freight, which is doubling down on its own on-demand marketplace. Never miss an insight. We have quantified what it takes to master each rule, as well as the extent to which excelling at each improves corporate performance. So to drive expansion, a company should begin with EX. Furthermore, increases in capital investments outstripped revenue expansion, compressing returns. The fresh cash will help Convoy invest more heavily in its technology that automates transactions between trucking companies and shippers. We studied the performance of these companies from 2005 to 2019, the 15 years prior to the COVID-19 crisis. Defined as the largest region in the portfolio by revenue. The company has rolled out various new features over the past year, including Convoy Go, a drop and hook marketplace that lets any carrier haul pre-loaded trailers; Automated Reloads, which uses machine learning to group full-truckload shipments for carriers and is helping reduce empty mile carbon emissions; Instant Bidding, which lets carriers bid on loads; and Convoy Connect, a transportation management system. Convoys platform, accessible via a smartphone app, uses machine learning to match carriers to loads and prevent trucks from driving empty miles with no loads. 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. Its revenue for the first quarter was up 51% year-over-year. Owned the product roadmap for the pricing tool responsible for over 70% of Convoy's top-of-funnel demand and over $600MM of . An air-conditioning and refrigeration manufacturer, for example, managed to offset slow growth in Japan by successfully expanding to North America and China. Though the segment also took a $81 million loss, more than double from last year. Shippers also get a dashboard to track their orders live, see ETAs, get delay alerts and run analytics on historical data. An extra five percentage points of revenue per year correlates with an . Analysts can review the sales of successive quarterly periods or the quarter of one year compared to. This decomposition reinforced the importance of a healthy core business. June 7, 2022 . We want to hear from you. Convoys core thesis is to replace this inefficient manual matchmaking with algorithmic matchmaking. 1 and ready to go public, A look back at the CNBC Disruptor 50: 9 years, 233 companies, When disruption becomes a force for good and bad, Cybereason CEO told world about DarkSide from a bomb shelter, The new tech taking on trillions of pounds of trash, How Relativity Space is reinventing the rocket, It's not a vaccine passport, but more people travel 'CLEAR'. It also hired John Murrow in October as general counsel; he previously helped two companies go public. Seattle-based Convoy is taking on the $1.2 trillion global trucking and shipping industry with machine learning and a sustainable, efficiency-driven mission. Among companies that managed to achieve this while being more profitable than their peers, this figure was one percentage point higher still. Truck drivers download Convoys free app to find work without going through brokers who typically use emails and phone calls. We are now at this place where weve got the automation, weve got the technology underpinnings, Gavin said. That has not been easy to accomplish over the past 15 years. warehousing), their customs brokerage, shipment insurance as well as trade financing offers. Drivers are getting paid less and more than 600 carriers went out of business in the first half of 2019, up from 175 in the same period last year, The Wall Street Journal reported. These revenue gains as a result of supplier diversity typically take three forms: new contract wins and strategic partnerships, customer base expansion as a result of brand preference, and customer base expansion as a result of their economic impact in underserved communities. Start by developing a clear growth ambition: a quantum of growth that is more than just the momentum of your current businesses. The company offers and facilitates instant quotations and online booking, automated loading suggestions, bidding, online payments, and viewing of shippers and facility details on loads, enabling clients to ensure improved operational efficiency and reduction in both associated costs as well as carbon waste. For companies with fast-growing core businesses, expanding into new areas can help position their portfolios ahead of future trends. While many factors could have affected these two companies stock price aside from their growth rates, our analysis suggests that outgrowing your industry is worth, on average, an additional five percentage points of shareholder returns per year. Growth Rate (y/y) 33% 2022 Funding $930.00M 2022 Revenue Click here to access our Convoy dataset. The research reaffirmed that revenue growth is a critical driver of corporate performance. than 70percent of its revenue. I think its a reflection of the culture weve built here, Gavin said. For ABC Company, that's: (January 2023 Revenue - December 2022 Revenue) / December 2022 Revenue. Convoy has 910 employees. But suppose you dont have this consistent growth engine? Convoy revenue is $297.2 M. How many employees does Convoy have? Seattle, Washington, United States. Promoted articles. Convoy was founded in 2015. I have. Startups certainly have disrupted the market, but they will need to work hard to maintain their competitive position, he said. 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). Convoy International The other side. The key global companies of Truck Fuel Card include Fuelman, Comdata, ExxonMobil, Shell, Convoy, CEFCO, Universal Premium, Coast and WEX, etc. The more rules you master, the higher your reward. This age-old axiom holds especially true today as the acceleration of pre-COVID-19 trendswidens the gap between corporate winners and laggards. Report Scope However, these figures varied among sectors during our study period. We think thats very important for our business, Lewis said. Lewis declined to reveal financial metrics. A large transportation company with 1,500 employees and an annual revenue of $106.8M, Convoy is headquartered in Seattle, WA. 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. Theres a laminated piece of paper on the table with a list of the companys values. (Annual sales and employees) What industry is the company in? 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. 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. We strive to provide individuals with disabilities equal access to our website. To date, the start-up has raised $668 million from the likes of Marc Benioff, Jeff Bezos, Bill Gates, U2's Bono and The Edge, and institutional investors including Fidelity, T Rowe Price, Y Combinator, and Alphabet's independent growth fund CapitalG. Convoy got a shot in the arm in 2021, as COVID strained the supply chain and even the largest truckers were running out of trucks, forcing enterprise shippers to shift their loads to digital marketplaces like Convoy to access the long-tail of carriers to ship their load. Convoy makes money by taking a cut from the transaction between the shipper and the trucking company. 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.) Consider this tale of two retail companies, both of which grew at 4 percent a year between 2007 and 2017 but in different segments. Approximately half of the total growth by companies in our sample came from geographies outside their home regionsan aggregate number fueled by Japanese and European companies that relied on international markets to compensate for slow growth at home. How will Convoy beat Uber and other startups including Transfix and Cargomatic? Convoy is the only digital marketplace that lets brokers list their loads on its platform and use its SaaS for matchmaking, competing with newer startups like MVMNT (raised $24.5M; backed by A16Z) that offer back-office SaaS to SMB brokers. Baillie Gifford, Fidelity Management and Research Co., Durable Capital Partners LP, and existing investors CapitalG and Lone Pine Capital also participated. For all of 2022, laptop and desktop sales were down about 16% compared to 2021, according to all the three reports. This report focuses on the global Freight Broker Software status, future forecast, growth opportunity, key market and key players. 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 hooked truck drivers with an app to easily find jobs and get paid quickly. The volatility caused by the pandemic helped shine a light on Convoys value proposition, said Ryan Gavin, the companys chief growth officer. 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. Numerically, it becomes: ($100,000 - $96,000) / $96,000. Seattle-based Convoy is taking on the $1.2 trillion global trucking and shipping industry with machine learning and a sustainable, efficiency-driven mission. 47 in 2020). Article (PDF-358KB) Over the past decade, many consumer-packaged-goods (CPG) companies have mastered the fundamentals of pricing, promotions, assortment, and trade investment revenue growth management's four main elements. 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. Supply chain snags throughout 2021, a contributor to inflation, and complications created by the Covid-19 pandemic appear to have made digital services like Convoys more critical to holding down costs for the U.S. trucking industry, which generates an estimated $800 billion of revenue annually. Now we can really start to scale our business., Looking ahead to a potential world with self-driving trucks, Convoy says it is well positioned, calling it a significant opportunity for Convoy and an exciting area to partner in., This shift in fleet management is a natural fit for digital freight networks like Convoy, Lewis wrote in the blog post. As Lewis begins talking about Convoy's latest funding round announced Wednesday a $400 million cash infusion raised at a $2.7 billion valuation he points at one in particular: Earn it through. Without it, foreign companies will probably struggle to compete with incumbents that better understand the local context. You can never really turn that entrepreneurial spirit off.. After extensive research and analysis, Zippia's data science team found the following key financial metrics. Meet the 2021 CNBC Disruptor 50 companies, Why Robinhood is No. EX -> CX -> revenue growth. Got a confidential news tip? None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Sacra. Companies with unreliable or missing segment data were excluded from the sample. The selection of markets needs to be precise, however. However, relatively few companies could boast such results. Generation also led a massive round for fellow Seattle startup Remitly this past July. The freight tech startup has so far raised a total of $266 million and has what FreightWaves estimates to be about 900 employees. 1301 2nd Avenue Suite 1300 Seattle, WA 98101 United States +1 (425) 000-0000 Convoy Timeline 2020 2021 2022 2023 Financing Round Captured Employee Count Estimated Employee Growth Want detailed data on 3M+ companies? Companies with unreliable or missing segment data were excluded from the sample. A Division of NBCUniversal. To buck these trends, business leaders need to follow a holistic growth blueprintconsisting of three core elements: a bold aspiration and accompanying mindset, the right enablers embedded in the organization, and clear pathways in the form of a coherent set of growth initiatives. The other is geography. Calculate monthly. Seattle, Washington, United States 1001-5000 Debt Financing Private convoy.com 6,826 Highlights Total Funding Amount $1.1B Contacts 647 Employee Profiles 17 Investors 50 Similar Companies 205 Find More Contacts for Convoy Convoy made $750M in 2021, growing 50% annually. Worldwide 5G network infrastructure revenue is on pace to grow 39% to total $19.1 billion in 2021, up from $13.7 billion in 2020, according to the latest forecast by Gartner, Inc. Communications service providers (CSPs) in mature markets accelerated 5G development . In fact, Lewis asked Bezos for help when creating the company values. Convoy Inc 3 years 5 months Advisor To Chief Executive Officer Nov 2022 - Jan 20233 months Chief Revenue Officer (CRO) Sep 2019 - Nov 20223 years 3 months Greater Seattle Area Built revenue. convoy revenue growth. 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%. Convoy is one of a handful of Seattle startups valued at more than $1 billion, or unicorns.. Explore institutional-grade private market research from our team of analysts. CNBC has created the ultimate list of disruptors 50 private companies whose innovations have revolutionized their industries and the way we lived in 2021. 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. This pattern of digitization has played out in nearly every other industry, and its happening in trucking right now, Convoy CEO Dan Lewis wrote in a blog post. We know that we can do better by using modern technology and algorithms to help orchestrate freight logistics, improve service, reduce waste, and help drivers. on average, an additional one percentage point of TSR per annum. Convoy's annual revenues are $10-$50 million (see exact revenue data) and has 10-100 employees. who manufactures restoration hardware furniture 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. $660 million to expand its long-haul truck booking operations. 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. Robinson booked $875M through its app/portal in 2021, up ~200% annually. Convoy Fast Facts Note: Revenues for privately held companies are statistical evaluations. This suggests a strong tendency for growth to revert to the mean. The pandemic highlighted how important trucking is and how volatile and inefficient this industry can be, Lewis said in a statement. 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. Alpega is a B2B logistics software firm that offers end-to-end solutions for all transportation needs. 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. Excluding the credit line, its raised $925 million to date and now has a $3.8 billion valuation. Sign up for free newsletters and get more CNBC delivered to your inbox. by Taylor Soper on November 13, 2019 at 3:00 amNovember 13, 2019 at 12:44 pm. GoFundMe Statement on the Freedom Convoy 2022 Fundraiser (2/4/2022) GoFundMe supports peaceful protests and we believe that was the intention of the Freedom Convoy 2022 fundraiser when it was . 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 Trucking startup Convoy lays off employees for third time in past year, will close Atlanta office, Convoy, which just raised $260M, lays off 7% of workforce in latest tech startup cuts, Convoy lays off more employees as part of reorganization at Seattle trucking startup, Former Convoy director leads new Seattle trucking startup that just raised $8M, Inspired by her familys business in India, Seattle founder leads AI startup that helps manufacturers, Seattle teen reveals how much carbon the ultra-rich emit from their private jets, Sales startup Outreach to lay off 70 employees, 7% of workforce, and slow office expansion, Study highlights concerns over satellite interference with Hubble observations, Photos: All dressed up with someplace to go, geeks turn out for Comic Con at new Seattle venue, Microsoft backs effort to extend fiber internet access to 20 million in Africa, Rover unleashes new pet gear including a patent-pending dog poop carrier, Amazon closing eight Amazon Go convenience stores in latest tightening of its physical retail, Amazon pausing construction on second phase of HQ2 in the Washington D.C. area, Nintex hires former Avalara president Amit Mathradas as CEO, Hydrogen-powered airplane aces its first experimental flight in central Washington, Global experts urge increased research into geoengineering, a Hail Mary for climate change, Last call for GeekWire Awards nominations: Help us honor the best innovators and tech leaders, Tech Moves: Armoire hires ex-Microsoft technical fellow; Chewy adds VP after buying Petabyte, Novo Nordisk laying off 86 workers as part of lab shutdown in Seattle, Salesforce stock spikes 14% after beating Q4 estimates; Tableau revenue grows 6% to $636M, Book excerpt: Ex-Google managers cautionary tale details alleged pregnancy discrimination, UW forms medical data science institute focused on AI, machine learning, healthcare, Amazons Ring names Xbox and Oculus vet Elizabeth Hamren as new CEO; founder Jamie Siminoff remains chief inventor, New bill wants FCC to collect data on IoT devices to assess spectrum needs, Big techs billions for climate: Heres where Amazon and Microsoft are making their carbon bets, Like what you're reading? Brokers get access to Convoy's portal as a SaaS for finding carriers, invoicing, and payments. hisc hose nozzle parts. The Information Technology and Communication Services sectors were the largest contributors to the 16.2% revenue growth rate for S&P 500 companies with more than 50% international revenue exposure. Other revenue streams include storing goods (i.e. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Freighters invested in new equipment after a strong 2018 but are now dealing with a cooling market. This suggests that organizations already in attractive markets should keep investing to stay ahead of the pack. The latest round of funding is the largest for a Seattle-area startup this year. Let us know. Sacra reserves any and all intellectual property rights in the report. In 2022, the world's top three vendors accounted for approximately % of the revenue. With less than 1% of the US trucking market, Convoy has a lot of growth headroom as a marketplace. Convoy revenue is $106.8M annually. 2016 Series B. Transfix raised a Series B of $22M. 2 Convoy offers basic financial services like a fuel card and invoice factoring with free same or next-day payment to carriers and recently added a paid Quick Pay service to get the payment in 8 hours at a 1.5% transaction fee. We think this is an area where we can have incredible impact on society because the supply chain is so big and so inefficient and there isnt an optimal supply chain solution thats available to anyone, Lewis said. Global Freight Broker Software Industry Research Report, Growth Trends and Competitive Analysis 2022-2028 24/7 Helpline: +1 626 539 9760 enquiry@qyresearch.com