Convoy went through four rounds of layoffs over the past year to help cut expenses. Other logistics startups that surged during the pandemic, such as Flexport and Flexe, have also laid off staff.
Before this week, Convoy had around 500 employees, down from a peak of about 1,500 people.
Founded in 2015 by two former Amazonians, Lewis and Grant Goodale, Convoy raised around $1 billion from a who’s-who list of investors that included Bill Gates, Jeff Bezos, Marc Benioff, former U.S. senator Bill Bradley, and even Bono and The Edge from U2 fame.
The company was valued at $3.8 billion after raising $260 million last year, which included $100 million from venture debt investor Hercules Capital. Convoy also secured an additional $150 million line of credit from J.P. Morgan at the time.
The Information reported that Convoy ultimately ran out of cash after revenue projections fell well short of expectations this year, and won’t be returning any money to equity investors. Hercules Capital is trying to sell off Convoy’s assets, according to The Information.
“I was hoping for a different and better outcome for you,” Lewis said on the call. “Because I think this is one of the most high-caliber, low-asshole ratios I’ve ever worked with, in this company. There’s just awesome fucking people here. And we built something that’s so incredible.”
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