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A wave of e-commerce logistics startups is threatening to break the UPS and FedEx duopoly

A wave of e-commerce logistics startups is threatening to break the UPS and FedEx duopoly
businessinsider.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessinsider.com.au Daily Mail and Mail on Sunday newspapers.

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Why VCs are now funding long-avoided warehousing startups

ShipBob
The pandemic boosted e-commerce and brought more venture capital funding to logistics startups.
VCs have traditionally avoided asset-heavy startups.
In 2020, asset-heavy e-commerce logistics startups raised more than $450 million.
When Dhruv Saxena first started fundraising for his startup ShipBob in 2014, he knew that finding the right investors was just as important as funding his startup at all. Seven years later, his most recent round was led by SoftBank with Y Combinator, Menlo Ventures, Bain Capital Ventures, and Hyde Park Ventures in tow.
Saxena founded ShipBob with the intention of seizing on a particular segment of e-commerce businesses. Third-party logistics companies that handle warehousing and fulfillment had fallen behind in their technology adoption, as Saxena tells it. Their manual processes meant small customers didn t have a place in their business model since it cost too much to onboard and support them. ....

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Shipping winners and losers in the e-commerce explosion

Logistics companies ran at full tilt in 2020 to keep up with e-commerce demand.
New players that can help retailers speed up the e-commerce supply chain are in high demand.
Entrenched players that didn t, or couldn t, adjust to the increased demand fast enough lost out.
As consumer dollars continue to shift online, logistics players know there s money to be made.
The National Retail Federation expects more than $1 trillion to be spent online in 2021 roughly 20% more than the record $969 billion in 2020. It s an unprecedented opportunity for freight and logistics players that can meet internet retailers exacting standards.
It s hard and messy, and not everybody wants to go figure that labor model out because it s difficult, said Craig Callahan, chief commercial officer for Werner Enterprises, a trucking company specializing in top-flight retailers including Walmart, Dollar General and the Home Depot. These retailers have strict standards, requiring pr ....

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Walmart's e-commerce, supply chain executives exodus

Six Walmart executives working on the retail giant's e-commerce and supply chain capabilities have left since February 2020. ....

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Niche logistics players are winning big in vaccines rollout

Photo by William Campbell/Getty Images
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Specialized logistics players are carrying vaccines, and peak shipment volume is yet to come.
The biggest challenge will be in rural areas, especially in countries lacking infrastructure.
Temperature sensors, tracking tech, and specialized packaging are enabling the rollout.
It s been three months since the first vial of Pfizer s COVID-19 vaccine boarded a United Airlines charter flight, but the logistical operation to distribute the drugs that will end the pandemic is just getting started.
With more than 280 million doses already administered globally, a third vaccine just approved in the US, and trillions more to go to get to herd immunity, the pace and the opportunity in vaccine transport is as unprecedented as the rollout itself. The major dis ....

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