Parcel delivery provider Deliver It has shut down, an apparent victim of intense competition in the domestic last-mile delivery sector that took off with the entry of tech-enabled startups responding to a surge in pandemic-driven online shopping.
Deliver It, which provided next-day delivery e-commerce and B2B customers in California, Arizona and Nevada, is the latest parcel service to go under in the past year. Pandion shut down in January, citing difficult market conditions. Other companies that have disappeared include Maergo, Point Pickup and Pitney Global E-Commerce.
Kendra Jackson, Deliver It’s chief commercial officer, wrote on LinkedIn she received notice that the company “unexpectedly closed its doors” on Monday. The company’s website does not have any information about going out of business and executives could not be reached for further details.
Pitney Bowes’ recent Parcel Shipping Index underscored how the recent influx of couriers in the United States has created a buyer’s market with providers competing on price and eating into the market share of FedEx, UPS and the U.S. Postal Service. The volume carried by alternative carriers has jumped nearly 40% in the past five years. In 2024, carrier revenue per parcel ticked down a penny to $9.09.
Independent and regional parcel carriers only represent 9.7% of the domestic parcel, according to ShipMatrix, making it difficult for all of them to succeed. Experts say too many companies jumped into the parcel market without full consideration of the high cost of residential delivery and they were squeezed when the e-commerce market normalized.,
Inflation, macro-economic uncertainty, declining e-commerce volumes from China because of Trump administration tariffs, more aggressive pricing from traditional integrated carriers and a slowdown in venture capital funding have also pressured delivery companies, according to Cirrus Global Advisors. Some carriers also expanded too quickly and were unable to maintain quality service levels.
“There is no need for the number of carriers that deliver today [or next day] in Southern California. I know of 8 different companies that can do your parcel delivery, not including UPS, USPS, FedEx or Amazon Shipping. The market is too fragmented for all of them to be individually successful. We will continue to see exits or consolidation in the months to come,” said Derek Lossing, founder of Cirrus Global Advisors, on LinkedIn.
Deliver It was an asset-light provider that used third-party carriers for physical distribution. The company served industries such as real estate, court reporting, finance and healthcare, according to the website. RFID tracking and after-hours drop boxes were part of its product offering.
Story ContinuesClick here for more FreightWaves/American Shipper stories by Eric Kulisch.
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