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Dive Brief:
- Veho and GLS US announced new market launches this month as alternative parcel carriers seek to grow and grab a larger piece of the U.S. delivery industry.
- Veho has expanded its e-commerce shipping offerings into Pittsburgh, Cleveland and St. Louis, the delivery provider announced July 1. The company, which also launched in New York City this year, can now reach 118 million people across 53 U.S. metropolitan areas.
- GLS is now picking up and delivering parcels in Dallas, marking another carrier to enter the highly competitive Texas market, per a LinkedIn post earlier this month. The launch will spur faster deliveries across the Western U.S. and create expanded pickup and delivery zones, GLS said.
Dive Insight:
Parcel carriers outside the big four of FedEx, UPS, Amazon and the U.S. Postal Service continue to debut in new U.S. locales as they push to attract more volume into their networks. While they remain a small slice of the overall market, alternative providers’ volume growth in 2024 outpaced major carriers, according to the Pitney Bowes 2024 Parcel Shipping Index.
Veho has doubled its e-commerce volume in the past six months as shippers are drawn to its reliable and cost-effective delivery experience, according to its announcement. The carrier delivers millions of parcels monthly for Macy’s, Lululemon, Saks and other brands.
Veho said it expects the Pittsburgh, Cleveland and St. Louis markets to each see over 10,000 parcels delivered per week.
Meanwhile, GLS has leaned on partnerships with other carriers in recent years to quickly expand its reach beyond the Western U.S. One of those partnerships involves Better Trucks, which gives GLS customers access to markets covered by the carrier, including Texas.
Not all alternative delivery providers have seen success of late. Deliver It shut down this month after facing financial challenges, following other now-shuttered companies like Pandion and Maergo.
