Parcel provider Deliver It ceases operations due to intense competition

Parcel delivery provider Deliver It has ceased operations due to intense competition in the last-mile delivery sector fueled by tech startups and increased online shopping during the pandemic. Other companies that have shut down include Pandion, Maergo, Point Pickup, and Pitney Global E-Commerce.

Kendra Jackson, Deliver It’s chief commercial officer, announced the closure on LinkedIn, stating the company unexpectedly shut down. Executives have not provided further details, and the company’s website lacks information about the closure.

The recent Parcel Shipping Index by Pitney Bowes highlighted a competitive market in the United States, with alternative carriers gaining market share from FedEx, UPS, and USPS. Carrier revenue per parcel in 2024 decreased to $9.09, with a 40% increase in volume carried by alternative carriers over the past five years.

ShipMatrix reports that independent and regional parcel carriers only make up 9.7% of the domestic parcel market, making it challenging for them to succeed. Experts attribute the struggles to high residential delivery costs, oversaturation in the market, and challenges in maintaining service quality.

Factors like inflation, economic uncertainty, decreased e-commerce volumes from China due to tariffs, and aggressive pricing from major carriers have also impacted delivery companies. Cirrus Global Advisors notes that some carriers expanded too quickly and were unable to sustain quality service levels.

Derek Lossing, founder of Cirrus Global Advisors, believes the Southern California parcel delivery market is oversaturated, leading to potential exits or consolidations. Deliver It utilized third-party carriers for distribution and served various industries with offerings like RFID tracking and after-hours drop boxes.

Read more at Yahoo Finance: Parcel provider Deliver It shuts down