[WisNorCan]

They got caught in the same thing that happened to Flexport and others in the freight industry.

Price per shipment cratered -> Revenue cratered. (They make a % of each shipment) -> Losses spiked up. (Because they had fixed cost)

Flexport had a burn run rate of $600M a year. Convoy had less burn but also less in the bank.

https://www.theinformation.com/briefings/flexport-revenue-dr...

[adamredwoods]

So Convoy's UVP was based all on price? Wouldn't the CEO/COO have seen this before rapid expansion?

[adaml_623]

I thought Flexport was still hiring a month or two ago

[BWStearns]

They had that weird moment where they fired/rescinded a bunch of new hires after Peterson came back and basically said "oh yeah we weren't supposed to be hiring."

[dopamean]

They were and the ceo commented on twitter that he had no idea why that was and then rescinded offers to people who were starting the next week.