An ambitious gamble combining rapid growth with visionary ambition is reshaping the freight forwarding industry. Flexport, the US-based innovator, is expanding at breakneck speed to challenge established giants like Kuehne+Nagel, DB Schenker, and DSV. Yet behind its remarkable year-over-year doubling lies a critical question: when will this growth translate into profitability, and how will Flexport fundamentally transform this traditional sector?
The Long Game: Investing in Tomorrow
Flexport's Chief Operating Officer Sanne Manders openly acknowledges that investors are prepared for an extended waiting period. This "growth-before-profit" strategy represents a radical departure from conventional freight forwarders' operational models. As Manders explains, there exists a fundamental divergence in expectations between public market investors and Flexport's private backers, with the latter prioritizing future potential over immediate returns.
This relentless focus on expansion inevitably extends the path to profitability. "Our investors are long-term investors," Manders states unequivocally—a declaration that underscores both confidence in Flexport's business model and conviction about impending transformation in global freight markets.
By the Numbers: The Distance to Market Leadership
Despite explosive growth, Flexport's journey to industry dominance remains lengthy. Manders provides sobering context: "In 2018, Kuehne+Nagel recorded nearly $20 billion in revenue, Expeditors just over $8 billion, while we stood at approximately $500 million. Even with annual doubling, catching up requires significant time."
This mathematical reality hasn't discouraged the company but rather fueled its determination to accelerate growth while viewing industry giants not as insurmountable obstacles but as benchmarks for eventual disruption.
Capital Commitment: SoftBank's 300-Year Vision
Flexport's ambitions receive substantial backing from prominent investors, including SoftBank Vision Fund, which led a $1 billion funding round. This partnership transcends financial support, representing strategic alignment between two entities with extraordinary long-term perspectives.
"The SoftBank Vision Fund might be the world's only institution thinking in 300-year terms," Manders reveals. "They're considering horizons far beyond typical investment cycles." This shared long-view philosophy enables Flexport to pursue industry transformation without quarterly performance pressures.
Tech-Driven Differentiation: The Asset-Light Advantage
Flexport's valuation premium stems largely from its tech-centric approach contrasting with traditional asset-heavy logistics providers. "We're fundamentally a technology company building scalable platforms," Manders emphasizes. This positioning allows operational agility and rapid scaling through proprietary digital solutions.
The company's custom software automates freight processes, enhances efficiency, and enables data-driven logistics optimization—capabilities that increasingly define competitive advantage in modern supply chains.
European Expansion: Strategic Market Penetration
Flexport recently announced new UK and Denmark offices, strengthening its European presence alongside existing Amsterdam and Hamburg operations. These moves reflect deliberate globalization strategy, as Europe represents both a critical freight market and proving ground for Flexport's international capabilities.
Valuation Debate: Tech Premium or Market Speculation?
Flexport's $3.2 billion valuation draws scrutiny from analysts noting discrepancies between current financials and market capitalization. Shipping analyst Lars Jensen has cautioned about potential digital valuation bubbles, highlighting Flexport's per-TEU valuation multiple exceeding traditional competitors by 19x.
Manders counters: "Investors view us as a tech company—direct comparisons with conventional logistics providers miss the point. Consider how Amazon and Walmart trade at completely different multiples." This distinction underscores how investor expectations differ for tech-enabled disruptors versus established operators.
The Growth Imperative: Velocity Over Immediate Returns
"Investors prioritize growth," Manders continues. "When competitors grow 10-15% annually—healthy for mature firms—but you're doubling revenue, that commands entirely different valuation parameters." This growth trajectory enables market share capture that ultimately drives profitability.
Flexport's ascent symbolizes broader industry transformation, where technology redefines traditional sectors. While challenges remain substantial, the company's progress demonstrates how innovation can rewrite established business paradigms—with freight forwarding representing just the beginning.