In order for small businesses to gain volume and revenue share in a parcel market dominated by national couriers, increasing their presence on shipping platforms is as important as increasing their service capacity and coverage. A number of partnership announcements between freight forwarders and logistics technology companies in recent months suggest that this move is a priority for both sides.
For software companies and shipping platforms, a wider range of shipping options attracts more users. In the case of email service providers, the increased availability of the platform offers a better chance of attracting customers based on their capacity rather than their notoriety.
“The service that allows shippers to try out multiple carriers is valuable to us because we win by performance,” said B
Years ago, shippers didn’t have quick and easy ways to select new carriers and adjust their assortment. Now they can use the software to more easily share their plans across multiple providers.
Senders using the EasyPost service, for example, can receive packages from FedEx, UPS, and the United States Postal Service.But the company, which provides an API for shipping apps, also gives users access to smaller carriers like Hailify, a last-mile delivery service available in many metro areas.
“This customization has been something new for 10 years,” said Nick Bhashyam, CEO of Hailify. “It’s really brought progress and growth to the entire last-mile industry.”
However, it is not just technological advances that are driving the simultaneous development of regional carriers and the technology companies they partner with.
For Ben Emmrich, the enormous pricing power of large carriers such as FedEx and UPS at the beginning of the COVID-19 pandemic motivated him to found Tusk Logistics.He is the CEO of a company that offers a platform that connects shippers to regional delivery networks and went public in February.