Several alternative parcel carriers are expanding their U.S. coverage to meet shipper demand.
Since February, Jitsu, SpeedX and Veho have announced new markets they are making deliveries in, or will soon. These companies join competitors like UniUni in bolstering their domestic networks to fuel volume growth and improve their value versus industry titans like FedEx and UPS.
Here's a rundown of the specific markets these carriers are launching in and why they're making the leap now.
Jitsu bolsters Midwest footprint
Jitsu will begin delivering in six additional Midwest cities starting April 1: Cincinnati, Cleveland, Indianapolis, Pittsburgh, St. Louis and Columbus, Ohio. The expansion will allow Jitsu to deliver to more than 122 million people in the U.S., according to a news release from the company last week.
The new markets add to the carrier's existing Midwest coverage in Chicago, Detroit and Milwaukee. Jitsu also serves major cities in the Northeast and western U.S., along with coverage in Texas, per its website.
"Whether we get to the Southeast by the end of the year I'd say is to be determined."
Adam Bryant
Jitsu CEO
Indianapolis will serve as Jitsu's primary hub for interconnectivity within the Midwest, with Chicago and Columbus designated as secondary hubs. Any shipper injecting volume into Indianapolis can reach Chicago, Cincinnati, Columbus, Detroit and St. Louis with "basically next-day service," Jitsu CEO Adam Bryant said in an interview. Other covered cities in the region can be reached in two days from Indianapolis.
"The interconnectivity is very helpful because it just gives you that common entry point," Bryant said. "So it's a lot less to have to manage for the client themselves. It also enables much better utilization on both the first mile and the middle mile."
Jitsu seeks to double its 2024 volumes by the year's end as the company's regional interconnectivity and new markets draw more customers, Bryant said. It's also mulling an expansion into the Southeast in the near future.
"Whether we get to the Southeast by the end of the year I'd say is to be determined," Bryant said.
SpeedX grows in several states
SpeedX has expanded into new markets throughout the U.S., bringing more than 2,000 additional ZIP codes within the carrier's coverage scope, according to a company LinkedIn post on Wednesday.
States that are part of SpeedX's growth plan include: Maryland, New Jersey, Pennsylvania, Missouri, Oklahoma, Texas, Florida, North Carolina, South Carolina, California and Arizona. The company said further growth is coming later this year.
The expansion targets secondary and tertiary markets that still offer plenty of upside for SpeedX, Anthony Pizza, VP of growth and innovation, said in an interview. For coverage decisions, the company considers demand from existing customers and how much volume they can offer in a new market.
"We have their support, kind of helping to build that base load, and then getting the unit economics to a place where we can bring on new business," Pizza said.
SpeedX's delivery activity is slated to increase as it expands. The company currently sees about 250,000 packages in its network daily, and it's expecting that number to reach up to 700,000 packages heading into the peak season, Pizza said. A more diversified client base is helping that momentum.
"Instead of just relying on the Sheins and Temus of the world, we have other clients, some of them cross border from the U.K., Australia that are going to support us in these new markets as well," Pizza said.
Veho sees promise in two new markets
Veho has officially expanded into Louisville, Kentucky, and Richmond, Virginia, following a three-month trial period, according to a February announcement.
In the first 60 days of coverage, Veho delivered as many as 10,000 parcels in Louisville and 5,000 in Richmond each week, per the release.
"That Veho is delivering thousands of parcels per week in Richmond and Louisville in just two months demonstrates the strength of Veho's flexible operating model and how eager ecommerce brands are to grow with us," co-founder and CEO Itamar Zur said in the announcement.
The additions build upon previous company expansions, such as Detroit and Columbus launches last fall. With Louisville and Richmond, the parcel carrier now can reach more than 105 million people in 44 U.S. markets.
Amid the new market launches, Veho seeks to capture more volume from lightweight parcel shippers pressured by rate hikes from the U.S. Postal Service and similar options like UPS SurePost. The company unveiled its "Premium Economy" service in January in response to those changes, touting the new offering's low costs.
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