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Trucking startup Convoy closes operations with no buyer

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Re: Trucking startup Convoy closes operations with no buyer

#91

Post by eli »

TedDoesntTalk wrote: post #60
vogt wrote: post #55

Earlier quoted context omitted.

>CEO said there'll be no severance or healthcare. Classy. Learning a lot about how certain people treat their employees during these last couple of admittedly insane years. Good for future reference, I guess - though not much solace now. I feel for the employees. Edit: Wow, more responses than I thought! I admit that the tone of my comment was too reactionary, but my opinion stands. I won't modify the original commen…

Isn’t this standard for startups that shutdown?

It’s common but that’s no excuse

Re: Trucking startup Convoy closes operations with no buyer

#93

Post by boringg »

gcampos wrote: post #80

To think that 1 year ago they were aggressively spamming me for an engineering position there. How you go from "hyper growth mode" (according to the recruiter email) to closed operations within 13 months?

Easy - high burn rate and no revenue.

Re: Trucking startup Convoy closes operations with no buyer

#94

Post by duxup »

wooly_bully wrote: post #11

(Ex-)Convoy engineer here. No mystery as to why this happened, sudden tight market and low available capital demolished us. External reasons given in the article were the same we knew and couldn't do anything about considering that none of the M&A options materialized. Detailed the shutdown on a call at 8:30am Pacific this morning. CEO said there'll be no severance or healthcare. Lot of talented folks in Seattle and…

I'm confused as to what Convy "had" anyway.

Was it largely spot rates, a bid board, and lots of small carriers?

Customers easily could just get rates / carriers elsewhere and walk from Convoy?

No other services making income keeping customers around?

Rates are pretty fluid in logistics, very strange that they would rely on that alone if that was the case.

Re: Trucking startup Convoy closes operations with no buyer

#95

Post by indymike »

dragonwriter wrote: post #47
xxpor wrote: post #43

Earlier quoted context omitted.

How can there be no healthcare without a bankruptcy filing? Isn't COBRA mandatory?

COBRA isn't employer-paid healthcare, its an ex-employee option to pay for the previously-employer-offered plan, while the employer offers a plan to current employees . If there are no more company operations and no current employees, there is also no plan and no COBRA. This could also be an issue if a company restructured so it didn't have to offer employees health care because of size or everyone being part time or…

> COBRA doesn't guarantee that there is a plan from your former employer, it just gives you a right to pay for it yourself if there is, for a certain period of time.

When a business close, if there is no money to pay the insurance company, the plan will be terminated by the insurance company, and correct, there will be no COBRA. Bad situation.

Re: Trucking startup Convoy closes operations with no buyer

#96

Post by seltzered_ »

bastardoperator wrote: post #68
dragonwriter wrote: post #47

Earlier quoted context omitted.

COBRA isn't employer-paid healthcare, its an ex-employee option to pay for the previously-employer-offered plan, while the employer offers a plan to current employees . If there are no more company operations and no current employees, there is also no plan and no COBRA. This could also be an issue if a company restructured so it didn't have to offer employees health care because of size or everyone being part time or…

Cobra is such a huge slap in the face too for most people. We know you just lost your income as of today, but do you wanna buy this health insurance plan for 3K a month?

It can be a slap but sometimes an employer will discount the COBRA insurance for a period of time.

Re: Trucking startup Convoy closes operations with no buyer

#97

Post by opportune »

tempsy wrote: post #29
fairity wrote: post #23

And so it begins. A large wave of unprofitable startups that raised in 2021/2022 are going to fail at becoming profitable and be forced into fire sales or bankruptcy over the next 12 months. The capital constriction really started in Q3 2022. Here's a graph: https://techcrunch.com/wp-content/uploads/2023/03/Screenshot... If I had to guess, bankruptcies like this peak sometime next year since many of these companies w…

Yes feels like we've seen surprisingly few shutdowns.

A lot of companies that raised a lot in 2021-22 didn’t hire much because the labor market was so tight. Also, I think many knew that the availability of capital was unnaturally high and that they shouldn’t plan as if those conditions would continue.

Re: Trucking startup Convoy closes operations with no buyer

#98

Post by bart_spoon »

fourseventy wrote: post #45
faefox wrote: post #40

Earlier quoted context omitted.

"As I just shared on our call, I think the world of you." Just not enough to offer any severance or healthcare. #TruckYeah!

The company is shutting down because they ran out of money... where do you think this magical severance pay is going to come from?

If things are so dire today that they have no money and must shutdown immediately, they were dead in the water 6-8 weeks ago anyways. The company isn’t going to be miraculously saved during that time, so just take the cash you used to pay your employees to rearrange chairs on the sinking ship, call it 2 months early, and pay out their severance/health care during that time while they look for new jobs.

Re: Trucking startup Convoy closes operations with no buyer

#99

Post by adastra22 »

bart_spoon wrote: post #86
benced wrote: post #72

Earlier quoted context omitted.

Ex-Convoy employee here: if a company is shutting down, it obviously can't provide severance. It's not a matter of class or not.

If things are dire enough to close up shop now, they probably were dire enough to close up shop 2 months ago, and you can use the cash to give your employees some runway for finding new employment.

A startup will never survive long enough to close the next round with that logic.

Re: Trucking startup Convoy closes operations with no buyer

#100

Post by lawlessone »

bradleybuda wrote: post #42
bloopernova wrote: post #16

Earlier quoted context omitted.

> CEO said there'll be no severance or healthcare. That should be illegal. How much are the executives making from this? I'm really sorry you're in the middle of this. I hope you can find a better job soon.

What makes you think the executives are making anything from this? It's a startup, it ran out of money, it failed, there is nothing left. Joining a startup is risky.

>What makes you think the executives are making anything from this?

If the CEO was still speaking for the company then he's being paid.

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