In its prime, the Seattle-based freight network company Convoy was one of tech's esteemed startup success stories.
Two Amazon veterans set off on their own in 2015 to build a platform that would connect shippers with carriers who had extra, unfilled space on their tractor trailers-making supply chains more efficient and reducing emissions. Flush with more than $1 billion in equity funding and debt it had accumulated over the years from some of the tech industry's most prominent investors, entrepreneurs, climate activists, and lenders, Convoy had at one point hired 1,300 employees and built out a network of more than 400,000 trucks across the country.
By 2022, Convoy had started to dabble in a wide array of business lines outside its initial purview: a fintech offering for quick payments; a fuel card for discounts on diesel; a trailer-rental service. By the end of that year, Convoy's gross margin had grown to a respectable 18%, according to a document seen by Fortune. But its hefty fixed expenses, including steep engineering and product team costs and an expensive lease in Seattle, were weighing down its financials, according to someone close to the company. Those expenses kept Convoy from turning a net profit.
This story is from the February - March 2024 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February - March 2024 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
AI Isn't Coming for Your Job At Least Not Yet
So far, the technology has replaced only a small number of workers. But the future risks many more.
THE TRUTH EVEN HE CAN'T DUCK
Aflac's DAN AMOS has spent his 34 years as CEO selling insurance against illness and death. Now he has to confront his aging customers' mortality and his own.
THE NEW HOLLYWOOD POWER PARADIGM
Inside the sisterhood of stars changing the narrative.
SAUDI ARABIA'S POWER PIPELINE
The oil earnings flowing from the most profitable company in history are helping the Saudi kingdom shake up the global economyand the old geopolitical order.
THE [FOREVER] FOUNDER
Michael Dell turned his dorm-room PC company into the go-to hardware provider for 99% of the Fortune 500. Now the longest-standing founder-CEO in tech has a chance to cash in on the AI bbom—and make himself and his company bigger than ever.
HOW BOEING BROKE DOWN
Boeing's strategy sent the stock soaring more than 1,000% over 20 years. But it contained dangerous flaws that are only now coming into view amid a drumbeat of terrible news.
The Art of Banking
To appeal to the ultrawealthy, banks like UBS keep fine art-and art expertsclose at hand.
Is the Bitcoin Bull Market Safe to Buy?
ETFs have made Bitcoin investing easier than ever. But they may be adding air to a bubble.
Goodbye, Tough Guy
More executives are going on all-male retreats to open up, feel less lonely, and build empathy.
Memo to Silicon Valley: Bring It On
New York City's Runway was the pioneering leader in Al-generated video for years. Now ChatGPT maker OpenAl is coming for it.