Convoy, a digital freight matching platform, has announced the closure of its operations citing challenging market conditions caused by a downturn in the freight market and tightening capital markets. Convoy also stated that it faced challenges in securing a strategic acquisition due to a reduced investment appetite and a shrink in M&A activity.

Convoy has closed its core business operations and plans to explore and evaluate strategic options for the future of its business.

Analyst QuickTake: Convoy’s closure follows a series of layoffs and cost reduction initiatives. The company announced its first round of layoffs in June 2022 , shortly followed by a second round in October 2022 . It announced the third and fourth rounds of layoffs in February 2023 and June 2023, resulting from changes implemented to the customer service model in an effort to increase efficiency and profitability.