Originally Posted in yahoo!finance by Glenn Taylor, January 15
USPS isn’t the only courier looking to gain market share with a cheaper alternative, with parcel delivery platform Veho unveiling its Premium Economy service Wednesday.
The service is designed for high-volume e-commerce brands and third-party logistics providers (3PLs) that need small parcels delivered in five days or less, with the company guaranteeing delivery windows of two-to-five days across 44 markets.
Veho is launching the new service as an alternative to both the USPS Parcel Select and Ground Advantage products, as well as UPS’ low-cost, residential delivery option SurePost. SurePost has recently seen reductions in service, largely due to the expiration of deal between UPS and USPS that powered the offering.
The last-mile delivery platform estimates that 3.9 billion parcels per year weighing less than one pound will be impacted by the 2025 general rate increases across USPS, UPS and FedEx.
Orders destined for Premium Economy are automatically routed to the nearest Veho hub, processed and assigned through its platform to one of 67,000 delivery drivers in the Veho network. Veho’s dispatch and routing algorithms are built to ensure delivery within the promised window.
The Premium Economy launch comes more than a week after Veho said it expanded its partnership with warehouse management system (WMS) ShipHero.
While ShipHero’s client base of more than 5,000 e-commerce brands and 3PLs originally could only leverage Veho for parcels fulfilled by the ShipHero WMS, these users can now ship their parcels through Veho out of their own distribution centers.
