Starting a new venture in the same industry as your former employer can be a legal minefield—something two ex-Flexport employees are now discovering. Flexport, a San Francisco-based logistics giant once valued at $8 billion, has taken legal action against Freightmate AI, a competitor founded by two of its former executives.
The lawsuit, filed in a California court last week, accuses Freightmate’s leaders of stealing proprietary data, including sensitive documents and source code, to jumpstart their new venture. Flexport claims that this alleged breach of trust gave Freightmate an unfair edge in the fiercely competitive world of logistics tech.
At the heart of the case is Flexport’s allegation that Freightmate’s COO, Yingwei Zhao, downloaded more than 70,000 confidential files while still on Flexport’s payroll. According to court filings, Zhao secretly agreed to launch Freightmate AI with Bryan Lacaillade, now Freightmate’s CEO, all while continuing to access Flexport’s systems.
Flexport asserts that Zhao went as far as using his browser’s Incognito Mode to avoid detection while copying a list of over 1,000 Flexport clients. Additionally, the suit alleges Zhao pulled source code directly from the company’s GitHub repository onto a personal USB drive—one of the most serious accusations of intellectual property theft the company has ever made.
While Flexport has refused to comment publicly, Freightmate’s spokesperson told TechCrunch, “We dispute Flexport’s claims and intend to vigorously defend ourselves in court.” They admitted some Flexport files ended up in Freightmate’s possession but insisted the documents were “inadvertently retained” and never accessed or used.
Flexport isn’t buying that explanation. The company argues that Freightmate’s recent growth in the logistics automation space could only have been possible with stolen trade secrets. Flexport is now asking the court not only for damages but also for an injunction that could prevent Freightmate from using any of the allegedly misappropriated materials.
High Stakes in the Logistics Tech Race
Both companies operate in the rapidly growing logistics tech sector, leveraging artificial intelligence to streamline complex global shipping operations. However, Flexport has a sizable head start, backed by a $260 million investment from Shopify in 2023.
On the other hand, Freightmate, headquartered near Seattle, recently gained traction by raising a $5 million seed round led by Washington-based Fuse Capital in January 2025. Their pre-seed funding came from Wischoff Ventures, although the amount remains undisclosed.
The lawsuit underscores the serious risks involved when startup founders leave to compete with their former employers—especially in industries driven by proprietary software and customer data. Legal experts suggest that cases like this could become more common as more employees from tech unicorns venture out to build competing businesses.
For now, the future of Freightmate AI hangs in the balance as both companies gear up for what could be a lengthy legal battle over trade secrets and competitive advantage.
