<story><title>Trucking startup Convoy closes operations with no buyer</title><url>https://www.bloomberg.com/news/articles/2023-10-19/bezos-backed-startup-convoy-closes-operations-with-no-buyer</url></story><parent_chain><item><author>dpflan</author><text>Given that you were in the company and presumably have an idea of how the company functions: where did the funding go? $260M gone in 1 year?&lt;p&gt;&amp;quot;Convoy, which raised $260 million in a funding round last year that valued the business at $3.8 billion, on Wednesday told employees in an email that it would stop accepting shipments until further notice and that it was rescheduling or canceling existing loads.&amp;quot; (wsj)</text></item><item><author>wooly_bully</author><text>(Ex-)Convoy engineer here. No mystery as to why this happened, sudden tight market and low available capital demolished us. External reasons given in the article were the same we knew and couldn&amp;#x27;t do anything about considering that none of the M&amp;amp;A options materialized.&lt;p&gt;Detailed the shutdown on a call at 8:30am Pacific this morning. CEO said there&amp;#x27;ll be no severance or healthcare.&lt;p&gt;Lot of talented folks in Seattle and beyond who&amp;#x27;ll be looking for new gigs.</text></item></parent_chain><comment><author>WisNorCan</author><text>They got caught in the same thing that happened to Flexport and others in the freight industry.&lt;p&gt;Price per shipment cratered -&amp;gt; Revenue cratered. (They make a % of each shipment) -&amp;gt; Losses spiked up. (Because they had fixed cost)&lt;p&gt;Flexport had a burn run rate of $600M a year&lt;i&gt;. Convoy had less burn but also less in the bank.&lt;p&gt;&lt;/i&gt; &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.theinformation.com&amp;#x2F;briefings&amp;#x2F;flexport-revenue-drop-showed-extent-of-freight-slowdown&quot; rel=&quot;nofollow noreferrer&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.theinformation.com&amp;#x2F;briefings&amp;#x2F;flexport-revenue-dr...&lt;/a&gt;</text></comment>
<story><title>Trucking startup Convoy closes operations with no buyer</title><url>https://www.bloomberg.com/news/articles/2023-10-19/bezos-backed-startup-convoy-closes-operations-with-no-buyer</url></story><parent_chain><item><author>dpflan</author><text>Given that you were in the company and presumably have an idea of how the company functions: where did the funding go? $260M gone in 1 year?&lt;p&gt;&amp;quot;Convoy, which raised $260 million in a funding round last year that valued the business at $3.8 billion, on Wednesday told employees in an email that it would stop accepting shipments until further notice and that it was rescheduling or canceling existing loads.&amp;quot; (wsj)</text></item><item><author>wooly_bully</author><text>(Ex-)Convoy engineer here. No mystery as to why this happened, sudden tight market and low available capital demolished us. External reasons given in the article were the same we knew and couldn&amp;#x27;t do anything about considering that none of the M&amp;amp;A options materialized.&lt;p&gt;Detailed the shutdown on a call at 8:30am Pacific this morning. CEO said there&amp;#x27;ll be no severance or healthcare.&lt;p&gt;Lot of talented folks in Seattle and beyond who&amp;#x27;ll be looking for new gigs.</text></item></parent_chain><comment><author>iterminate</author><text>&amp;gt;1,000 employees means a burn rate in the hundreds of millions per year just on the costs of having employees, $260m burned in a year sounds about right for a company of that size.</text></comment>