Veho Launches Premium Economy Delivery for Relief from Rising Shipping Costs

Originally posted January 15, 2025 by Alexis Mizell-Pleasant in Supply and Demand Chain Executive

Veho announces the launch of a Premium Economy service designed for e-commerce brands that need parcels delivered in five days or less, cost effectively and with a superior delivery experience.

"The economics of small parcel delivery are fundamentally changing, and smart brands are realizing they need more than just low rates – they need a delivery partner that can drive business growth,” says Veho CEO Itamar Zur. “While USPS and legacy carriers are significantly raising rates without improving service, Veho's Premium Economy offering delivers what modern e-commerce brands actually need: delivery in five days or less, with real-time tracking, AI-powered delivery verification, and a proven track record of helping shippers maximize their return on shipping. We're not just offering an alternative to USPS – we're proving that delivery can become a competitive advantage."

Key Takeaways:

• Veho is launching the new service as an alternative to the United States Postal Service’s Parcel Select and Ground Advantage products, as well as UPS SurePost, amid the recent drastic rate hikes and reductions in service announced by both USPS and UPS. Veho estimates that nearly 4 billion parcels per year will be impacted, with the biggest impact on parcels weighing less than one pound, the average rate for which is expected to rise by 43%2.
• Veho’s new Premium Economy offering will provide a cost-effective alternative to USPS and UPS services and is particularly well suited for consumer brands shipping lightweight parcels, subscription brands shipping non-perishable goods and third-party logistics providers.