Conflict intensifies over cargo transportation as DAT gains control of Convoy
In a significant shake-up of the freight industry, DAT Freight & Analytics has made a series of strategic moves that have positioned it as the clear market leader in the load-matching market, often compared to the established powerhouses like Mastercard.
DAT, the largest digital freight marketplace in the U.S., offers advanced load boards, carrier vetting, market insights, and various freight-matching tools, making it the go-to platform for brokers and carriers alike[1][3].
Before this consolidation, Convoy stood as a significant independent competitor, recognised for its technology-driven freight-matching platform with carrier satisfaction, mobile app usability, and fast payment options[3][5]. However, Convoy was recently acquired by DAT from Flexport, with its technology and team integrated into DAT's offerings to enhance automation and network scale[3][5]. This consolidation further cements DAT’s dominant position.
Truckstop, another notable player, is currently the number-two player in the load-matching market, known for load visibility, automated booking, and carrier engagement, but it lags behind DAT and Convoy in terms of scale[3].
The Mastercard and Discover of Freight Load Matching
In the analogy to credit card companies, DAT is the "Mastercard" of the load-matching market. It is the largest, most established, and encompassing platform with broad reach and trusted data for brokers and carriers. On the other hand, Convoy could have been considered the "Discover", a strong but smaller challenger innovating with advanced tech and customer-friendly features. With Convoy's acquisition, no other prominent "mid-tier" challenger with similar scale and brand identity currently stands out[1][3][5].
Recent Developments
DAT's acquisition of Convoy includes a system that takes a cut for automating deals, similar to Amazon's business model[6]. This move allows DAT to participate in the gross merchandise value of the load, earning a commission rather than a software-as-a-service fee[7].
Meanwhile, Flexport has cemented its role as a vital player in global trade[8]. However, Flexport's goal of expanding into full domestic door-to-door logistics has faded[9].
Roper, DAT's parent company, has spent over $450 million on acquisitions in the past seven months[10]. Notably, DAT has acquired the Convoy platform from Flexport for approximately $250 million in cash[2], and Triumph recently bought Greenscreens, a rate-data startup, for $160 million[4].
In recent weeks, Highway has launched a private load board to compete directly with DAT and Truckstop, while Scott Moscrip, the founder of Truckstop, returned as interim CEO in June and has focused on in-house product innovation[11].
Interestingly, Highway has been conducting joint sales calls on brokers along with Triumph, aiming to secure second place in the load-matching wars[12].
Emerging Players
Cargado, a startup founded by Matt Silver, occupies an unchallenged niche in the fastest-growing segment: cross-border logistics[13].
Convoy, a venture-backed unicorn, shut down abruptly in October 2023 and was later purchased by Flexport for $16 million[14]. Despite this setback, Ryan Petersen, former CEO of Convoy, secured a 15x return on the platform in just 24 months[14].
SONAR has no intentions of getting into load matching and prefers to remain the only independent freight data provider[15].
In conclusion, the load-matching market is witnessing a significant shift, with DAT's acquisition of Convoy marking a significant step towards consolidation. The landscape is evolving, and it will be interesting to see how the remaining players adapt and respond to this change.
| Role | Company | Description | |------------------|-------------------|--------------------------------------------------------------------------------------------------| | Market leader / Mastercard | DAT | Largest digital freight marketplace, extensive network, broad broker and carrier tools | | Challenger / Discover | Convoy (acquired by DAT) | Technology-driven platform known for usability, carrier satisfaction, and fast payments (now part of DAT) |
[1] DAT Freight & Analytics [2] DAT acquires Convoy from Flexport for $250 million [3] DAT, Convoy, and Truckstop: A Closer Look at the Leading Freight Matching Platforms [4] Triumph buys Greenscreens for $160 million [5] Convoy Acquired by DAT Freight & Analytics [6] DAT's Acquisition of Convoy Includes a System That Takes a Cut for Automating Deals [7] DAT's Acquisition of Convoy Allows DAT to Participate in the Gross Merchandise Value of the Load [8] Flexport: The Tech-Driven Freight Forwarder [9] Flexport's Goal of Expanding into Full Domestic Door-to-Door Logistics Has Faded [10] Roper Buys Truckstop for $1.1 Billion [11] Scott Moscrip Returns as Interim CEO of Truckstop [12] Highway Conducting Joint Sales Calls on Brokers with Triumph [13] Cargado: A Startup Focused on Cross-Border Logistics [14] Convoy Shuts Down and Is Later Sold to Flexport for $16 Million [15] SONAR's Focus on Remaining the Only Independent Freight Data Provider
- To stay competitive in the evolving load-matching market, brokers and carriers are looking for insights about market trends and client needs, thus requiring a strong supply chain technology that can provide real-time market intel.
- As the market leader, DAT's platform offers features such as advanced load boards, carrier vetting, and various freight-matching tools, and with the acquisition of Convoy, they now have an additional edge in automation and network scale.
- With the increasing focus on sustainability and eco-friendly practices in diverse industries like lifestyle and sports, many companies are looking to improve their finance management systems to better understand and reduce their carbon footprint, making it essential for load-matching platforms like DAT to offer solutions supporting these goals.
