This post originally appeared on Supply Chain Dive.
Dive Brief:
- Next-day delivery provider Veho is launching service in 11 new markets in New York, Massachusetts, Connecticut and Rhode Island, the company announced Tuesday.
- The expansion brings Veho’s delivery and returns network to 42 total markets covering more than 100 million people, according to a news release.
- Veho, founded in 2016, serves a mix of enterprise retailers, apparel brands and meal kit companies, including Nordstrom, Saks, Rent the Runway and HelloFresh.
Northeast markets Veho is launching service in
Market Date of first deliveries
Hartford, Connecticut. May 31
New Haven, Connecticut. May 31
Springfield, Connecticut. May 31
Greenwich, Connecticut. June 7
Bridgeport, Connecticut. June 7
Boston, Massachusetts. June 8
Worcester, Massachusetts. June 8
Bronx, New York. June 7
Westchester, New York. June 7
White Plains, New York. June 7
Providence, Rhode Island. June 8
Source: Veho spokesperson
Dive Insight:
Veho expanding its coverage makes the company a more attractive delivery partner along the East Coast, with “great connectivity from all the way up in Boston, all the way down into South Florida,” said Brian McDevitt, Veho’s chief revenue officer, in an interview.
One of Veho’s considerations for launching in a new market is the ability to maintain its on-time delivery performance, McDevitt said. The company’s operations team scopes out particular markets months in advance to understand the specific complexities of certain areas and ensure service levels remain high.
Veho also makes sure driver availability can be matched to demand. It uses crowdsourced gig drivers to pick up packages from the company’s facilities and deliver them to customers.
“We have a lot of executives from Uber, who are very adept at attracting drivers to our network through various forms,” McDevitt said.
On-time deliveries are especially important for meal kit companies like HelloFresh, as delays could compromise their perishable products.
“Those extra one to three percentage points of on-time delivery make a meaningful impact on their bottom line and really help them address some of the core business challenges that they’re trying to address, such as customer churn,” McDevitt said.
Veho said in the release that it has brought “an increasing number of Fortune 100 retailers into its roster” and has increased its volume by 48% since this time last year. Executives at Kroger and Rent the Runway said in the release that Veho’s expansion into the Northeast will help both companies deliver to their customers in the region.
“Offering a premium delivery and at home pick up experience has been an instrumental part of Rent The Runway’s strategy, and we are pleased to extend that benefit to customers in this region soon with Veho,” said Drew Rau, SVP of Supply Chain and Inventory at Rent The Runway, in a statement.
Entering the Northeast continues the geographic expansion of Veho’s delivery coverage. The company launched in Florida and additional Midwest markets last year. McDevitt declined to disclose any particular markets that Veho is considering a launch in next, but he added that the company is “constantly thinking about how we can find expansion opportunities that suit the needs of our clients.”
