Smaller package delivery firms gained ground but UPS and FedEx are grabbing it back fast. Here's how the little guys plan to defend their share.
"There was a long runway for these delivery companies when FedEx and UPS didn't want your business," said Derek Lossing, an Amazon Logistics alum who now advises investors.
Having only one or two carrier options — UPS and FedEx — went from the norm to a liability for retailers fairly quickly in the pandemic. Itamar Zur, CEO of Veho, who raised perhaps the most eyebrow-raising round of the boom — a"I think FedEx and UPS are amazing companies, but I think gone are the days where shippers are looking to just work with them," Zur said.
Many startups, including Axlehire and Veho, lean on the gig economy to make next-day deliveries. They contend that speed is still of importance — just rarely at any cost, these days. "There's a lot of companies out there that I think got way over their skis. I think we did a nice job kind of growing responsibly," said Bryant."It's easy to say that now when you're looking back. Obviously, if that growth had continued we'd be wishing we had done that."
"If we decide to raise again, we're gonna be raising in a position where we don't have this massive valuation," Ruffin said.
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