DAT enters into agreement to acquire the Convoy Platform from Flexport

Earlier this week, Beaverton, Ore.-based DAT Freight & Analytics announced it has agreed to acquire the Convoy digital freight network platform from San Francisco-based freight forwarding and customs brokerage services provider Flexport. Company officials said that by bringing the Convoy platform into its product portfolio, it will add best-in-class automation and digital freight matching technology.

And it added that the Convoy platform gives freight brokers “a powerful way” to automate nearly every aspect of a freight transaction and connect with trusted trucking companies, stating it pairs well with the DAT One subscription-based load board, where nearly 700,000 loads are posted on a daily basis.

“The acquisition of the Convoy Platform demonstrates DAT’s ongoing commitment to enhancing network value for our customers,” said Jeff Clementz, DAT President and CEO. “Together, we will give customers a better, broader freight-matching network, the ability to manage more loads and capture incrementally more business, and ultimately more choice.”

As previously reported by LM, roughly three months after it acquired the technology and intellectual property of Seattle-based Convoy, following the closing of Convoy’s business in October 2023, due to the effects of the freight recession and a slowdown in capital market activity, Flexport subsequently formally introduced the rollout of the Convoy platform to its service portfolio in April 2024 and expanded the platform with thousands of carriers, according to DAT.  

When it acquired the Convoy Platform, Flexport officials explained that the Convoy Platform is comprised of an AI-powered marketplace aggregating a large, reliable pool of carrier owner-operators into a common platform with automated end-to-end load management, giving brokers access to a unique pool of capacity that is highly flexible, operates 24/7, and provides high tracking visibility. It added that brokers can use the platform to maximize the reach and effectiveness of their carrier operations teams, and automate manual tasks, including carrier negotiation, vetting, status updates, document management, and payment, lowering the carrier procurement and load management costs for loads on the platform by up to 90%, while expanding and diversifying load coverage across the country.

Ryan Petersen, Flexport founder and CEO said Flexport invested in the Convoy Platform because it saw its potential.

“In just 18 months, we improved the core technology platform, reengaged the market, and significantly increased its value,” he said. “Importantly, we demonstrated a strong product-market fit by decoupling the platform from a brokerage. We look forward to a lasting relationship as a DAT customer. This sale is a win for the entire freight industry, a win for DAT, and a win for Flexport.”

DAT said that by bringing the Convoy Platform into the fold, it will provide various benefits, including:

• Deep experience: The Convoy Platform’s engineers, product experts, and operations professionals will continue to be led by Bill Driegert, who will join DAT’s executive leadership team;
• Fraud prevention at scale: The Convoy Platform’s proprietary technology uses machine learning and AI models to verify carriers on the network and block malicious actors. With these advanced security features built in, brokers can reduce their risk of fraud and access a trusted network of carrier capacity, all while increasing their efficiency and growing their business.
• Easy-to-use mobile experience: The Convoy Platform is recognized for high carrier satisfaction and usability. Today, nearly 30,000 carriers—primarily owner-operators and small trucking companies—use the app to find loads, manage paperwork, receive payments, and more; and
• Fast, reliable payments: Every carrier on the Convoy Platform is eligible to get paid via QuickPay. It’s easy to use and available on every load on the platform, providing another option for fast payouts to carriers

DAT added that in the future it will integrate the Convoy Platform into its DAT One product, which will allow brokers to seamlessly access both automated and hands-on freight-matching options, and give carriers a faster, easier way to find quality loads from trusted brokers, supported by DAT’s scale and reach.