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Introduction
Startups in the logistics, distribution, and transportation sectors have been gaining momentum over the last decade. Since national and global trade is a beacon of post-pandemic recovery, investors have taken a keen interest in nurturing logistics technology startups.
The global logistics market has witnessed a rise in 20,000+ startups during 2015-2021. They mostly offer varied software solutions for easing logistical and shipping operations. Some are diving deep into escalating warehouse technology, while others focus on post-purchase customer experience or shipping.
In this article, we look at the top new emerging logistics startup companies around the world and discuss their specialties.
Top 10 New and Emerging Logistics Startup Companies
1) ClickPost
Starting in 2015 in the city of Gurgaon, India, ClickPost has left a marked impression on the logistics tech industry of the country. ClickPost’s expertise lies in the spectrum of shipping functions needed by eCommerce companies.
From multi-carrier integration to returns optimization, ClickPost has developed services to tackle logistics challenges unique to Asia. For example, its NDR program strives to resolve RTO% and stuck shipments for B2B, B2C, and D2C companies offering cash on delivery orders. It helps retailers communicate with customers to resolve failed delivery issues.
The biggest advantage ClickPost offers its clients is a large pre-integrated carrier base that they can easily integrate within a day’s time. Coupled with this advantage, it quickly generates shipping labels, return labels, and Airway bills.
Its tracking APIs and webhook integration add a boost to last-mile visibility and shipment tracking. Its returns optimization module auto-allocates carriers to shipments based on both fixed and flexible rules set by retailers. This ensures that only the best carrier is designated to handle a shipment for a given location.
It leverages technology to streamline post-purchase customer experiences. For example, its white-labeled branded tracking pages illustrate not only the specific milestone of a shipment but also act as a great marketing tool. It has designated space for cross-selling with personalized product recommendations based on a shopper’s previous purchase history.
2) Flexport
Founded in 2013, Flexport is a freight forwarding and shipping software based in San Francisco, California. It primarily offers LCL and FCL freight booking and tracking for land, ocean, and air freight, alerting customers and merchants with milestone-based updates.
Flexport broadly enables shippers to monitor their purchase orders, SKUs, and cargo from a single dashboard and details the location of priority or stuck shipments. By monitoring the shipment lifecycle, it flags any exceptions occurring midway. It strives to provide clinical insight into key metrics like landed cost and transit time as advanced reporting.
It is a medium to collaborate with brokers, shippers, and suppliers for customs brokerage processes. Ships high-valued goods equipped with GPS trackers, in-person escorts from origin to destination, and geofencing.
Flexport’s popularity as a rising freight management platform has earned it funding worth 2.2 billion USD, of which 200 million USD was added in October 2022.
3) Flowspace
Flowspace is a cloud-based fulfillment and logistics startup founded in 2017 and headquartered in the Greater Los Angeles Area, USA. It shot to popularity with 150+ fulfillment centers spread in all federal states, omnichannel inventory control, and integrated visibility.
Flowspace offers multiple customized solutions to eCommerce merchants. It is well-versed in order management, handling out-of-stock situations, and managing numerous 3PLs from a single dashboard. Because of its versatility in tackling marketing, customer success, and logistics functions with high-tech tools, it has earned the trust of over 500 D2C brands.
Flowcase has different use cases for eCommerce, social commerce, marketplaces, and fulfillment hubs. It offers users real-time inventory tracking, automation-led warehousing, and a 99% on-time shipping success rate.
Some of its fulfillment abilities are Amazon FBA prep, container unloading, pick, pack, and ship, cross docking, kitting, wholesale picking, and D2C fulfillment. It acquired 46 million USD in funding in Series B.
4) Stord
Stord is a supply chain management startup orchestrating a customer-centric approach to fulfillment, transportation, and logistics. It is dubbed as ‘Inc. 5000’s fastest-growing omnichannel fulfillment company’. It has received a total funding amount of 325 million USD in Series D.
Stord’s expertise lies in omnichannel warehouse management, relaying flexible, fast, and customizable solutions. It offers forward stocking, cold storage, and seamless B2B and B2C fulfillment support. Other notable services include discounted parcel shipping, custom packaging, kitting, retail distribution, and temperature control storage.
Stord has also made a dent in freight transportation with features such as customs brokerage, FTL and LTL booking, drayage, and cross-docking. It has a fleet network of 20,000+ trucks and a record of 99% on-time delivery.
It acts as a control tower combining warehousing with transportation, offering integrated visibility and business decision optimization. Needless to say, the startup company has become a cord connecting warehousing needs with transport for many U.S. eCommerce retailers.
5) Loop Returns
Loop Returns hyper focuses on creating as seamless a returns experience as possible. With a motto to revolutionize post-purchase customer experience, it prioritizes cost reduction for small and mid-level eCommerce merchants. Beginning in 2017, it has quickly climbed up the ranks of cloud-based logistics software with funding worth 125.5 million USD.
Loop dives deeply into automation, creating a self-service returns portal for customers that works offline and online. It builds an intuitive return experience with a minimalist user interface. Loop makes an intuitive return experience, urging customers to exchange products instead.
Additionally, it collects user feedback, offers bonus credits to customers opting for exchange, and recommends products based on purchase history. With its cross-selling and upselling features, Loop helps Shopify merchants to generate revenue from returns, not losses.
6) Lalamove
Lalamove is named one of the fastest-growing logistics startups, founded in the year 2013 in Hong Kong. It has made a name in the van hailing and delivery services industry with a 24/7 on-demand delivery schedule. Lalamove has a prominent name among Unicorn logistics, with funding worth 2.5 billion USD in 9 rounds.
Lalamove caters to a very specific local need- van hiring and has revolutionized the working process of hiring vans. It has created the technology to match customers with drivers within 12 seconds and fulfills local deliveries within an hour.
It offers not only door-to-door services but also office delivery services with a substantial network of 700,000 drivers and route optimization. Lalamove has spread across Asia, Latin America, and Central America, with captured markets in Sao Paulo, Taipei, Singapore, and Dhaka.
7) Airmee
Airmee is Europe’s foremost shipping and delivery startup that’s fossil-free and wholly carbon-neutral. Launched in 2018 in Stockholm, Sweden, Airmee has witnessed exponential growth in the past five years. Since its inception, it has delivered over 15 million packages across the European Union with an astounding 99% delivery success rate.
The core activities of the startup are divided into three verticals: fast home delivery every day, outdoor locker delivery, and label-free returns. Airmee has earned its name for fast delivery speed on the Nordic region’s snow-covered grounds, use of green energy, and same-day delivery.
Like its competitors, Airmee has all the primary logistics utilities: ETA calculation, same day, next day, express deliveries, and integrated tracking. It also controls a chain of lockers with 24/7 accessibility for customer convenience. Airmee has become a home name for Scandinavian countries earning its funding worth 27.9 million USD in Series A.
8) Paack
Paack is the joint product of a team assembled in Barcelona, Spain, and the logistics intelligence of engineers in Dubai. Today, this eCommerce delivery company has spread in over 100 cities delivering over 200 million parcels. It has leading insights and market standards of the United Kingdom, Spain, Portugal, France, and Italy.
As a delivery solutions provider, it has adopted a sustainable approach with programs such as decarbonization drives and optimizing routes for shorter-distance travel. Paack focuses extensively on crafting a delivery experience that earns your customer's trust. In this regard, it offers easy systems integrations, same-day delivery scheduling, and competitive rates.
Paack solely promotes customer convenience with delivery time flexibility, real-time tracking, and collecting feedback. It is now imparting its services to clients such as Sephora, H&M, Loewe, El Corte Inglés, and Decathlon. Owing to its last-mile delivery solutions, it bagged 307 million USD as funding from 33 investors in Series D.
9) Sennder
Sennder is a freight forwarding SaaS startup that links large commercial shippers with local small freight carriers operating in Europe. Since its launch in 2015, Sennder has become the largest carrier network in Europe for FTL shipments. Today, it has spread to 11 countries with an impeccable 40,000+ truck strength.
So far, it has amassed 19 investors’ funding of 340 million USD in the Series D session. True to its renown as a digital freight forwarder, Sennder leverages technology to deliver high-quality services. Some of these include express deliveries, same-day shipping, refrigerated transport, and eCommerce logistics solutions.
Sennder boasts eight transport types, ranging from tautliner, flatbed, and roadtrain to transporter vans. It also has a digital platform to provide full viability of shipments, GPS-tracked vehicles, and dynamic delay alerts. It also offers notifications to customers on request and deep analytical reports.
10) SiCepat Express
SiCepat Express is a second-mile and last-mile delivery expert centered in Jakarta Pusat, Indonesia. It started operations in 2004 and, over the years, has become an honored name in the Indonesian logistics industry. The company has extensive experience in order fulfillment, warehousing, and fast deliveries within 15 hours.
Owning its capacity to scale and expand in the ASEAN region, venture capitalists have invested 273.5 million USD in SiCepat. Its service ranges from same-day and next-day delivery, large cargo delivery, and cash-on-delivery to cross-border logistics.
5 Ways to Choose the Best Logistics Startup for Your eCommerce Business
Logistics companies are part and parcel of the eCommerce industry. Hence they exist to benefit eCommerce businesses and unlock growth and value. The startups mentioned above are but a fraction of the overarching startups present in the field today.
If you are on the hunt for the best logistics startup services, we highlight some of the best ways you can choose to reach a conclusion:
1) Explore Service Charges
Service charges are a crucial component of logistics costs for many eCommerce companies. Usually, there are multiple components involved in doing business with a startup. Starting with a fixed setup fee and monthly charges for using a particular service to add on.
There are a lot of variations in how these companies quote their charges. Some offer free trials, some have a tiered pricing approach, and others offer custom quotes. Therefore, researching the service costs can be the deciding factor in keeping a healthy bottom line.
2) Check Service Capacity and Delivery Speed
A startup operating in a niche sector, like shipping, product returns, and warehousing, offers different services than one engaged in multiple areas.
Companies needing specialized services in one area, such as returns, can look at Loop. However, businesses requiring a comprehensive product addressing each pain point of logistics will be happy with software like ClickPost.
For freight forwarders and eCommerce delivery companies, their delivery speed and area coverage are significant factors.
3) Track Funding and Investors
Acquiring funding is a signal of efficient operations and a steady cash flow. Tracking the investors' and funding details can help you gauge the financial stability and longevity of a startup.
4) Inspect Technology Use and Scalability
It is an irrefutable fact that the logistics industry requires advanced technology to channel productivity, convenience, accuracy, and scalability. The adoption rate of current, cutting-edge technology like AI, ML, IoT, route mapping, and robust API networks are hallmarks of the above metrics.
The more technologically equipped a company is, the better its services will be. It can keep abreast of real-time tracking, simplify shipping and return complications, speed-up work efficiency, and optimize delivery. Technology also helps startups to scale their operations and handle the service capacity of medium and large enterprises.
5) Look Out for Testimonials and Feedback
We all look at restaurant ratings or customer reviews before placing a takeout or purchase as we believe in the wisdom of the crowd. The same rule applies to figuring out the best-suited startup partner.
Checking previous customer reviews, client feedback, and a dissection of the pros and cons can reveal a whole lot about doing business with a startup. It also gives a glimpse into the company's past performance and possibly the areas you would want to dive deep into with the startup.
Conclusion
The logistics sector has expanded rapidly with the proliferation of startups at a global scale. And it brings a lot of good news. Startups are mostly at a stage where they entertain flexibility and offer custom solutions. They are excellent partners in ramping up logistics operations, from controlling warehouse space to integrated shipment tracking.
With our article here that mentions the top emerging and expanding logistics companies, we hope you find the right partner.
FAQs
1) What features should an eCommerce company look for in a good transportation logistics startup?
There are several things you can look at to choose the best transportation logistics company. Starting with area serviceability to examine its area coverage. Then you can look at its fleet network, the types of vehicles they have, and the energy it uses. Lastly, you can check its on-time delivery performance, SLA adherence, and technology usage. These factors relay its suitability for scaling your business and ensuring customer satisfaction.
2) What are some current innovations in logistics startups?
Some innovations and technology trends that have already gained a foothold among logistics startups include the following: automating tasks with the help of AI and ML, green logistics steps like carbon offsetting and using electric vehicles, and cloud computing for storage and retrieval. Others include on-demand warehousing, automated guided vehicles, and IoT for supply chain visibility.