Digital freight startup Transfix announced that Jonathan Salama, the company’s 36-year-old co-founder, is taking over as CEO after Lily Shen resigned, effective March 2.
The Wall Street Journal reports that Transfix, like many freight brokers, has struggled over the past year as freight volumes and rates have fallen alongside waning demand.
Transfix and its partner G Squared Ascend I in October terminated a planned merger via a special purpose acquisition company, citing “current public market conditions.” That same month, Transfix laid off an undisclosed number of its roughly 300-person workforce. The SPAC had been expected to raise up to $375 million for Transfix to expand its business. Company officials say they raised some money in a private funding round with G Squared and another backer, New Enterprise Associates, but they won’t disclose the amount.
Salama says Transfix is well positioned to grow absent a major investment by being more efficient.
Timely, incisive articles delivered directly to your inbox.