Riding a wave of recent innovations, digital freight network powerhouse Convoy moved up a notch on this year’s FreightTech 25, edging out Tesla (NASDAQ: TSLA) to occupy the No. 3 slot on FreightWaves’ list of most disruptive companies.
Ziad Ismail, the company’s chief product officer, said 2019 has been an especially fruitful year for Convoy, which netted $400 million in a Series D round announced Nov. 13.
“Over the past year in particular, we’ve really accelerated both the rates and impact of the innovation,” he said. “There have been multiple big breakthroughs we’ve been working on for several years.”
Ismail credited the Seattle-based company’s innovation model, rooted in small teams that operate autonomously, with enabling Convoy to crack some of the industry’s most pressing challenges.
He cited as an example its Automated Reloads product, a feature that corrects what Ismail described as the “terrible problem” of empty miles, in which trucks drive with empty trailers.
Launched in June, Automatic Reloads prepackages a collection of loads that take into consideration criteria such as the carriers’ lane preferences, driver hours of service availability and facility wait times.
The platform reduces empty miles by 45% for many drivers, according to Ismail. “That’s something we worked on for multiple years to get right,” he said.
In February, Convoy solved another problem it had been working on for several years: automatically matching 95% of loads with no human intervention.
Convoy Go, also unveiled in 2019, scaled up a two-year-old pilot project. The program utilizes a Convoy trailer pool and allows owner-operators and small fleets to take advantage of power-only loads, maximizing truckers’ driving time and leading to more loads and higher revenue.
Coming in 2020
Asked about the next round of innovations, Ismail hinted at even bigger breakthroughs to be rolled out in the next three to six months.
Declining to reveal specifics, he said the new products will push further on empty miles and reducing waiting time for drivers.
“The problem space is going to be quite consistent for us: driving down waste in the industry. That is our North Star. That is what we measure all our innovation against.”
Solving the waste conundrum addresses the trucking industry’s huge environmental challenges, Ismail said, while also yielding an attractive business model.
Companies named to the 2020 FreightTech 25 were judged by an external panel of industry experts, with voting conducted and overseen by accounting firm Katz, Sapper & Miller (KSM).
Each member of the panel ranked their top 25 companies on a 1- to 25-point basis. The companies generating the most points make up the FreightTech 25.
This article is published jointly with our partners at Convoy. To view more Future of Freight content, click here.
DT
Correct. Unless you are running 1000+ miles most multi-stop loads don’t work as you spend hours just sitting and loading or unloading and not running. That’s why the huge carriers charge up to $300 extra per stop because lots of stops mean you lose money on the load. Nobody wants them. We all want 1 and 1 no touch loads so we can get on to the next one and keep running.
If Convoy were to pay the going rate on these multi-stops they would go broke even faster. That’s why the rate per mile may seem decent at first but don’t be fooled as you spend 5 hours per stop just sitting and waiting to load or unload and nobody willing to pay detention no matter what they tell you.
Tommy Kern
Having worked with most of the brokers. JB Hunt and Convoy will be the two winners in the long run. I am also rooting for CH Robinson
Scott W Stremmel Sr
Driving down waste time??? Combining loads to reduce dead head miles, I get it, what a concept. But, they don’t think about is the wasted time in loading and unloading times. The rates don’t justify in combining loads. Not in the southeast regions and I’m sure it’s the same in other regions. As a carrier, it’s more profitable to break up the combined loads. Guess what I’m getting at it is, taking two or three loads that are combined and breaking it up for two or three rates. Just do the math???
DENNIS PASCAL
Finally same one who understand this industry. I try to do business with convoys last years , but man they don’t know this industry , bring people form outside of knowledge of logistics.
Miguel Yolo
When will they turn a profit?
Commence holding breath in 4…3….2..
Artie
Quicker than Celadon
Matt Salvo
Probably the only company that truly is a digital freight broker. Interesting with both Convoy and Amazon in Seattle whether it will be a hub for new logistics.
David Tildern
Great headline. The sub-headlibe should be “But they still can’t figure out how to make any profit on a load and bleed cash faster than Niagra Falls loses water” lol.