Nabil Malouli’s Post

Digital freight startup CDL 1000 has acquired NEXT Trucking, in a minor transaction in M&A logistics. While this deal may seem like "new owner, same capital," it's worth noting that NEXT had been struggling due to a lack of focus, difficulty in the trucking market, and a need for a capital infusion or an exit. Let's hope this acquisition comes with a fresh infusion of ideas to tackle the challenges that still persist in the industry, because the overall trucking market right now is challenged, at best. Details in the article linked below (behind paywall). Link: https://lnkd.in/g-cUAPqa

Wow. This article by Paul Berger is worth reading if logistics technology is your thing. By 2018, it had become clear to me and Lisa Morales-Hellebo that we had to think about REFASHIOND Ventures: The Industrial Transformation Fund quite differently than conventional wisdom would suggest if we wanted to protect our limited partners from the vagaries of economic cycles. The process of back and forth debate and discussion we went through has led us to the current version of our investment thesis. Our Thesis: REFASHIOND Ventures: The Industrial Transformation Fund invests in early stage startups refashioning legacy industries through Data & AI, Advanced Materials, Advanced Manufacturing, & Next Generation Supply Chains; Defensible through economic moats. We emphasize scalable networks, platforms, ecosystems, and information infrastructure. We launched with a rolling fund on AngelList in July 2021, and made our first investment in September 2021. We have now closed 53 investments across 47 startups. Join us. It's still Day 0, and the opportunity couldn't be any bigger; We are in the early-stages of the largest sector-driven investment opportunity of our lifetime - the technology-driven refashioning, transformation, and reinvention of industrial value chains AND supply chains. #IndustrialTransformation #SupplyChain #Innovation #Technology #Startups #VentureCapital 

#HowDidThatHappen #NotesOnStrategy "But Convoy’s failure set off another, quieter collapse among the army of small trucking companies that Convoy built its business around." Moreover, "Others were left with expanded, expensive operations in a down freight market, along with a tangle of broken business relationships and litigation." This article by Paul Roberts delves into the unfolding aftermath of Convoy's epic collapse, and it's impact on the people least capable of easily recovering from its failure. I wrote about some of the challenges Convoy and its peers must contend with if they are to stand a chance of accomplishing their stated goal for FreightWaves, the article ran on November 5, 2019. Title: Commentary: Why are digital freight brokers struggling to solve their Uber-scale problems? Link: https://lnkd.in/g8hYzEdc From the The Seattle Times article below, "The sale price, according to someone familiar with the deal, was $16 million, or barely 2% of the roughly $1 billion investors put into Convoy." #FreightTech #DigitalFreightBrokers #DigitalFreightMarketplaces #Logistics #SupplyChain #Trucking #Startups #VentureCapital

A phenomenal read. #Tech is a means to an end and not an end in and of itself. While the efficiencies gained through Convoy's tech are laudable, successfully monetizing them to generate superior returns ran smack into the state of near-perfect competition of the industry. Successful trucking companies, asset-heavy or asset-light, have and will always rely on #relationships with #shippers first, judicious #lane management second, precise #fleet configuration third, and finally, tech in #support of the first three.

It’s hard to believe that Seattle’s darling unicorn and startup disruptor, #Convoy, has suddenly shut down. Although they had raised $260 million and reached a $3.8 billion valuation, Convoy’s closure is a reminder of the risks and uncertainties faced by startups operating in volatile industries, especially in times of economic downturn. On the other hand, it also shows how startups can embrace disruption, be agile, quick to market, and set up for unprecedented success. Someday, this will be a great MBA case study, as the rumored acquisition by Amazon or Walmart never materialized, but what a solid ride it has been. Good luck to the 500 employees who were let go yesterday, you will rise again and maybe drive forward a bigger fleet the next journey around. As a matter of fact, I still have my Convoy toy truck that I bought for my daughter at goodwill, along with the Scooby van and speedracer car- they will all be in the vintage box for real now. #digitalstartups #unicorns #disruptors

Convoy Trucking Startup, Backed By Jeff Bezos and Bill Gates, Is Closing Operation With No Buyer: Ty Roush reports via Forbes: Convoy, a Seattle-based digital freight booker with investors that include billionaires Bill Gates and Jeff Bezos, announced Thursday it would be shutting down, according to Bloomberg, after the company failed to find a buyer amid a "massive freight recession." Convoy's founder and chief executive Dan Lewis notified employees in an internal memo Thursday that "today is your last day at the company," noting the company is "exploring and evaluating strategic options for what might come next," Bloomberg reported. Lewis said the company had evaluated potential suitors to acquire it, though "none of the options ultimately materialized into anything sufficient to keep the company going in its then current form." Convoy was in "the middle of a massive freight recession and a contraction in the capital markets," according to Lewis, who added "this combination ultimately crushed our progress" and likely swayed potential suitors away from acquiring the firm. "Following an exhaustive process, spanning many, many months during which we explored all viable strategic options for the business, the result is where we are today," Lewis wrote. Convoy was founded in 2015 in an effort to prevent trucks from driving "empty miles" without loads. The idea was to use technology to make freight more efficient by connecting truck drivers with freight companies -- reducing shippers' costs, increasing carriers' earnings, and eliminating carbon emissions in the process. Read more of this story at Slashdot.

Breaking News: Unexpected Market Turmoil Leads to Convoy's Sudden Shutdown Seattle-based trucking startup Convoy has unexpectedly shuttered its core operations, a development that's resonating through the tech and trucking domains. Just 18 months ago, Convoy was bolstered by a robust $260 million funding round at a $3.8 billion valuation. The news broke via a memo from CEO Dan Lewis, citing an "unprecedented freight market collapse" and "dramatic monetary tightening" as the decisive blows to the company's stability. Convoy, once a promising venture with the backing of industry magnates like Bill Gates and Jeff Bezos, aspired to modernize the trucking industry by leveraging technology to connect truckers and shippers. However, the shift towards privately owned fleets and an oversupply of truck capacity created a challenging market scenario that Convoy couldn't surmount. This development underscores the crucial need for adaptability and a sturdy business model in the volatile logistics sector, especially for digital brokerages aiming to disrupt traditional frameworks. The closure of Convoy is a stark reminder of the unpredictable nature of the market and the necessity for robust strategic planning to navigate through tumultuous economic landscapes. Article link with full memo: https://lnkd.in/gN92im7J #convoy #brokerage #3pl #closingdoors #trucking #breakingnews #logistics

The trucking industry is facing unprecedented challenges, with many companies unfortunately having to make tough decisions. At Sureway we recognize these difficult times, and we're here to stay. While some may not weather this storm, we want to assure our partners and clients that Sureway is here for the long haul. We are committed to your success and are ready to navigate the challenges alongside you. In uncertain times, count on Sureway for reliability, stability, and unwavering support. #TruckingIndustry #StayingStrong #SurewayTransportationSWFL

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Undoubtedly, the future of transportation is upon us with innovations and disruptions in every corner. One company steering this change is Optimance Transport. In our latest article, "Is Door-to-Door Auto Shipping Changing the Future of Transportation Industry?" we highlighted how this efficient and personalized shipping transport service, founded by visionary leaders, is transforming the industry and setting new standards for vehicle transportation. How exactly are they doing this? Click the link below to find out! 🚗💨 https://lnkd.in/ePBs9CfF Be sure to follow Optimance Transport to keep up on their journey and learn more about where the transportation industry is heading. #Innovation #Transportation #StartUp #AutoShipping #DoorToDoor #FutureOfTransportation #Disruption #StartupBubbl