From local delivery to on-demand shipping and heavy freight, startups are pinpointing a range of services traditionally associated with logistics giants like FedEx.

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Over the past few years, a diverse group of startups have cropped up within the shipping and logistics industry, applying technology and new on-demand economy concepts to lower costs, increase flexibility, and streamline operations. Many of these new entrants are pinpointing services traditionally delivered by industry giants such as FedEx and UPS.

On-demand names such as Uber and Postmates are widely known and have attracted impressive amounts of funding. Though the on-demand boom has cooled somewhat, many of these startups continue to provide local delivery and last-mile courier services. A host of companies are attacking last mile challenges in other ways, such as developing automated ground-based and aerial drones.

Also in the mix are companies targeting larger freight services, both within LTL/FTL (less-than-truckload/full-truckload) trucking as well as international shipping and freight-forwarding operations. These include startups providing rate comparison and freight analytics, as well as technology-driven marketplaces to connect shippers and carriers.

VC and corporate investors have funded a number of these heavier freight companies thus far in 2016, including companies like Transfix, Convey (formerly Pivot Freight), Convoy, and Haven.

Using CB Insights data, we updated our infographic detailing US companies in shipping and logistics services, adding 14 new companies and removing companies that had been acquired (Zipments) or shut down (such as Shipster). See the image below.

Supply Chain and Logistics Research Briefing
In this webinar, we take a look at investment trends, major acquisitions, and how specific companies are making inroads in the space.

Click on the graphic to enlarge.

1-unbundling-fedex-july-2016

*Click here for the previous version of this infographic.

See some of our prior unbundling posts here:

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  • W. Morgan

    Shipster is killing it in NYC. Hope they make it out west soon!

  • Michel Choueiri

    Peership !

  • Patrick Luciano Wegener

    EasyDeliver.com.br

  • pablo

    great ,it is interesting and feasible from operational point of view . but from commercial point of view , I wonder , how theses new player could get the wide portfolio of clients that have captured Fedex and UPS?. how should the new value proposition be ?

  • Tim

    It’s unfortunate that only US-based companies are mentioned here. There are lots of great EU-based companies and startups in the freight transport industry (i.e. Transmetrics, Tri-Vizor, Teleroute, etc.)

  • http://www.michaeldempsey.me/ Michael Dempsey

    Hey Tim,

    We wanted to keep this graphic US only this time around due to the high number of players domestically targeting FedEx, however we are planning on putting together something involving the international companies as well, so stay tuned. Thanks for reading.

    Best,
    Mike

  • Tim

    Great to hear that, Mike! Looking forward to it!

  • Dan B

    This is Dan (Founder of Pivot Freight). Interesting piece and definitely see where technology is eating logistics, but I want to clarify that we are not disrupting Fed-Ex/UPS and consider them 2 of our strongest partners. Our company provides software for mid-market retailers and manufacturers that are using a complex network of suppliers, modes and carriers that most often include Fed-Ex and UPS. We provide integrations with their own accounts and with the data in a centralized repository – we give them very powerful insights that improve their entire supply chain. We are very proud to be listed with the other companies driving change in the logistics industry but our disruption is focused on legacy technology and processes – not the carriers.

  • Prasad Kopanati

    Check out ManyShip.com – a crowdsourced shipping platform.

  • Concerned Employee

    Good article. However, You missed the two biggest names – Amazon and Google

  • CB Insights

    Thx for reading. Amazon and Google don’t qualify as startups anymore :)

    But yes, they’re definitely getting into the mix as well and will make things interesting.

  • Matt Johnston

    Check out http://www.FreigthOnce.com We have been in business since 2012 with our SaaS TMS platform and have some of the leading manufacturing and distribution companies in the country experiencing saving
    using their existing carriers while delivering high tech analytical tools of large box TMS systems. Great job on the article and seeing other creative options that companies are starting to develop but not sure I would classify completely as disruptive. Tools such as FreightOnce empower the end user to make smarter,
    easier daily business decisions when it comes to freight and parcel shipments. In most of our case studies UPS & FedEx continue to be the freight leader in shipments for parcels and small LTL minimums whereas most saving are experienced in the larger LTL 250# and greater.

  • fastow2012

    How do you account for possible lost? Do you offer some insurance to senders? Are the motoboys working for your company or they are independent like uber drivers?

  • Hitch

    Hey, let’s not leave Hitch out of the conversation. http://www.hitchit.co

  • Sanjay Sharma

    As the supply chain economy is changing, manufacturers and trading partners want control of their shipments door-to-door without depending on their transportations. Second, they want to know the health of their shipments as they travel. Third, they need a way to collaborate and auto update all parties interested in the shipments based on exception, geo location and cause. And lastly they are looking for actionable information that is derived from insights and foresights. Fedex and UPS are far behind in servicing these needs. Can they tell the shipper which 5 are the problem shipments to focus on out of the 5000? Roambee (our startup) has stepped in to address this