Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 23 (Xinhua)-- Convoy, an American trucking start-up, announced that it will shut down its operations. The company has raised nearly $1 billion from well-known investors such as Amazon founder Jeff Bezos and Microsoft co-founder Bill Gates (CTOnews.com Note: currently about 7.32 billion yuan). Now, lender Hercules Capital is trying to sell the company's technology platform and intellectual property, but even if the company sells, equity investors may not get a penny.

Dan Lewis, founder and CEO of Convoy, said in a letter to employees that the company's core business would be closed immediately and that some employees would stay to deal with liquidation and "possible strategic choices in the future".

Convoy is trying to make the freight industry more efficient, using technology to reduce no-load mileage, thereby reducing transport costs and carbon emissions. The company points out on its website that there are two main problems in the freight industry: 35 per cent of mileage is unloaded, which leads to waste, and carbon dioxide equivalent emissions from unloaded mileage reach 8700 metric tons. Convoy claims to be able to solve these problems and break into a market worth $800 billion.

However, Convoy did not live up to its ambitions. Lewis blamed the company's collapse on the contraction of the freight market and the tightening of capital. He also revealed that the company had tried to sell, but without success.

Convoy has not yet formally filed for bankruptcy protection.

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