First and Highly Cost-Competitive Alternative to USPS Parcel Select, Ground Advantage, and UPS SurePost
NEW YORK, NY / ACCESSWIRE / January 15, 2025 / Veho, the technology company that operates one of the largest alternative parcel delivery platforms in the US, today announced 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.
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%. 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.
For decades, businesses and consumers have relied upon the USPS to deliver small parcels inexpensively, and USPS has done this - at a loss. That is now changing, with USPS both raising rates and ending its practice of delivering small parcels on behalf of other carriers, causing UPS in particular to raise its rates approximately 10% while reducing quality of service. Brands now have a choice: incur significantly higher shipping costs, or shift their sub-one pound volume to an alternative. Veho's new Premium Economy service is that alternative.
"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," said 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."
To date, Veho has differentiated itself from the legacy carriers mainly on speed and quality, with an average transit time between one and two days within its network and a highly regarded customer experience powered by the latest technology. But billions of parcels don't need to arrive in two days, and brands have historically relied on USPS to deliver them. Veho's new Premium Economy offering enables brands to deliver to customers in five days or less while maintaining low cost and benefiting from the same superior customer experience available for all other shippers on the Veho platform.
This includes enabling customers to update their delivery instructions in real time, leverage Veho's proprietary Perfect Placement technology to reduce the risk of porch piracy, and enjoy real-time parcel tracking, updates and support. The new service level is available beginning today and applies to parcels weighing under 25 lbs.
In just eight years, Veho's purpose-built technology and customer obsession has powered its industry-leading 99% on-time-delivery rate and 4.9/5 stars customer satisfaction, enabling e-commerce brands to offer their customers an-Amazon like delivery experience. This formula is proven to enable brands to get a higher return on their shipping spend, including evidence of reducing delivery costs by 35% and increasing customer lifetime value by 41%.
Today's news follows a string of momentum for Veho, including recently announced partnerships with Flexport, ShipWise, and ShipHero.
About Veho
Veho is a next-generation delivery platform, turning shipping from a cost center into a value driver. By combining purpose-built technology, customer experience obsession, and a scalable delivery network, Veho enables brands to offer an Amazon-level delivery experience that improves their bottom line. The industry-leading results speak for themselves: 99% on-time delivery, 4.9/5 customer satisfaction score, 71% fewer delivery-related refunds, and a 41% increase in customer lifetime value. Now one of America's largest delivery platforms, Veho serves 105 million Americans across 44 markets-and growing. Learn why leading brands like Sephora, Lululemon, Saks, and Macy's trust Veho to drive a return on their shipping spend at shipveho.com
Media Contacts: Evan.Wagner@shipveho.com or veho@escalatepr.com
SOURCE: Veho
View the original press release on accesswire.com
