Former Cargomatic Inc. CEO Jonathan Kessler is staying on at the Venice Beach, Calif.-based logistics startup he cofounded, despite reports last week that he had been ousted, the company said.
In an email sent to DC Velocity yesterday, cofounder and president Brett Parker confirmed that Kessler stepped down as CEO, but said he became its chief product officer and will remain on Cargomatic's board.
"It is common in the maturation of a fast-growth technology company to have the visionary founder move out of an operations role," Parker said. "The change does not affect our continued expansion and our prospects have never been more positive."
Parker said the company's plan for growth included continued venture capital investments, an increased focus on enterprise sales, and the recent hiring of logistics executives from Carlile Transportation Systems and XPO Logistics Inc.
Parker refuted accounts in this publication and others that Kessler was asked to leave. The reports, which surfaced Friday, came just weeks after the company classified as one of the "Uber for trucking" firms laid off half its staff. The company did not respond to requests for comment on those events in time for publication.
Parker said the company remains well positioned to grow its share of the estimated $77 billion a year short-haul, less-than-truckload (LTL) market
Cargomatic's software platform connects shippers, freight brokers, and motor carriers, with the goal of bringing new efficiencies to freight hauls of less than 200 miles by aggregating and rationalizing capacity.