Convoy Announces Transparent Auctions, Providing Unparalleled Visibility On Pricing & Timing To Carriers Bidding on Loads
Today, Convoy announces major enhancements to its carrier experience with two industry-leading innovations. First, Convoy’s transparent auctions now show bid ranges, revealing the highest rate that will be considered in the current auction round – empowering carriers to better target their bids. Second, Convoy now displays the auction round closing time, providing clarity on when carriers will hear back on bids placed. This results in greater transparency for carriers and an average of eight hours faster bid feedback than with the previous system, enabling them to more efficiently build their schedules.
Traditionally, carriers are required to negotiate over the phone with a broker. This process disadvantaged carriers without preexisting relationships with brokers, who are new to the industry, who speak English as a second language, or who are uncomfortable negotiating. Convoy was the first to launch in-app bidding in 2016, empowering carriers with equal opportunity to bid their preferred rate directly in the Convoy mobile app. This addressed many of the issues carriers experienced with over the phone negotiation but still left carriers without visibility into the range of prices being considered or when they would receive a response on their bids.
Today, Convoy closes that gap, providing carriers with increased visibility into bid ranges and auction round closing times on loads throughout our digital freight network.
“I liked Convoy’s bid process because, as a Spanish speaker, I am less confident in English and have been more successful when I limit the time negotiating rates directly on the phone. Now, Convoy’s new auction is even better because I can see the range that I need to be in with my bid and I know exactly when I will hear back.” – Paco, BAVU EXPRESS LLC
“The bidding experience was flawless. I submitted a bid for $150 more than the “Accept Now” price, but it was still within the posted range. The best part was my bid was confirmed within a few hours and I instantly received the ratecon!” – Josh, OMEXPRESS
“Bidding with Convoy is really attractive…This technology actually allows drivers to negotiate and ask for more without any of the pressure of being on the phone speaking with someone. And I think that’s awesome. I struggled for years to help owner-operators learn how to negotiate. In the real world, I’m an introvert. I don’t like controversy, haggling, or feeling like I’m cheap so I always avoid negotiating on a rate even though I leave money on the table.” – Kevin Rutherford, Sirius XM
How Transparent Auctions Work
Convoy’s transparent auction rounds are defined by the time that the auction round closes and the bid range that will be considered at that closing time.
- If carriers have placed bids within that range, the auction will end at closing time and Convoy’s systems will award the load based on the carrier’s performance on previous loads hauled and the rate they bid.
- If there are no bids within the range, Convoy will create a new auction round with a new closing time and new range. Any bids from previous rounds will automatically be carried over to the new round.
Convoy uses machine learning to optimize the decisions about when each auction round closes and what the bid ranges are. These machine learning models are trained to learn how different closing times and different bid ranges influence the outcome of the auction. For example, if the bid range is set too low, carriers may be disinterested in that shipment and choose not to bid. Convoy’s models train on this information, considering geographical shipment data, when the shipment is scheduled to start and finish, bidding activity by carriers in our marketplace, and other relevant information. As a result, Convoy’s in-app bidding and auction systems become highly efficient for carriers while ensuring high service levels for shippers.
“Our priority is to help carriers earn more with less hassle. Transparent auctions were created to establish a new kind of auction system that is transparent, productive and fair for all carriers.” said Ziad Ismail, Chief Product Officer at Convoy.
Try Convoy’s Transparent Auctions Today
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