Logistics Startups Guide

The logistics sector is rapidly growing. In fact, the global logistics market size reached a value of over $9 USD trillion in 2022 and is expected to grow to be $14.37 USD trillion by 2028.

As a result, there is no shortage of groundbreaking technology and premiere partners in North America, Europe, and beyond. To help support new customer trends (e.g. expecting same day delivery, two-day shipping, etc.) and compete with giants such as Amazon, ecommerce businesses need superb partners that can deliver results to meet (and even exceed) those expectations.

As a business owner, there are seemingly endless options for companies to utilise. In this blog we’ll discuss working with logistics startups — including how they’re different from traditional logistics partners — and identify some of today’s top logistics startups.

So, what do you want to learn?

• Top logistics startup companies to keep your eye on
• ShipBob: The leader in tech-enabled 3PLs
• Established logistics companies vs shiny startups
• What to look for in a logistics startup
• Logistics startups FAQs

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Top logistics startup companies to keep your eye on

There is a wide array of needs in the logistics industry, and an even wider array of logistics providers created to meet those needs.

While there are many logistics services to choose from, here are 12 new logistics companies that have shaken up the space with innovative ideas, technology, processes, and more in various verticals.

Company	Overview	Funding	Investors
Anvyl	Anvyl is a technology platform that streamlines brands’ supply chain processes, offers order and payment tracking, and provides logistics visibility.	Series A Funding: $11.8 M	Redpoint, Company Ventures, First Round Capital, and more
Arka	Arka offers customisable and sustainable packaging that allows brands to cultivate an enhanced brand experience.	Seed Funding: $125k	Asimov Ventures, Montage Ventures, VTF Capital, and more
Cin7	Cin7 provides cloud-based inventory and order management software to increase efficiency.	Equity Round Funding	Rubicon Technology Partners
Cogsy	Cogsy’s software solution takes business’s data and creates forecasts for inventory to minimise stockouts and grow revenue.	Seed Funding: $5M	Accel, Bain Capital Ventures, Sugar Capital, RiverPark Ventures, and more
Gorgias	Gorgias is an artificial intelligence ecommerce customer helpdesk tool that enhances the support experience and aids in conversion and customer satisfaction.	Series B Funding: $42.4M	Alven, FJ Labs, Greycroft, and more
Happy Returns	Happy Returns is a platform that enables customers to complete easy returns in-person or by mail and allows businesses to retain revenue and increase loyalty.	Venture Funding: $25M	U.S. Venture Partners, Upfront Ventures, PayPal Ventures
Inventory Planner	With Inventory Planner, businesses are able to do inventory forecasting, create purchase orders, identify trends, and manage stock for multiple warehouses.	Private Equity Backed	Parent Company: Brightpearl
Linnworks	Linnworks allows business owners to connect multiple marketplace channels in their logistics operation to automate processes and capture revenue.	Private Equity Funded	Marlin Equity Partners
Loop	Loop is a returns platform that creates a seamless returns and exchange process.	Series B Funding: $75.5M	CRV, Renegade Partners, Peterson Ventures, Ridge Ventures, and more
Route	With Route, customers are able to track their packages in real-time, protect purchases, and more.	Series B Funding: $48.5M	Craft Ventures, Album VC, Justin Timberlake
Rush	Rush provides customers with tracking information via smart emails and SMS messages to lessen support tickets and increase customer satisfaction.	Early Stage VC: $300K	Unknown
Shippo	Shippo offers business owners features to improve their order fulfilment process to make it cheaper and faster.	Series E Funding: $154.3M	Bessemer Venture Partners, Uncork Capital
Tusk Logistics	Tusk offers brands a reliable shipping network, covering 70% of the continental United States.	Pre-seed: $1.6M	Forum Ventures, Titletown Tech, Fulfilment IQ

Anvyl

Business owners across the world lose out due to cost overruns, late shipments, defective shipments and more. Anvyl creates a more efficient process for businesses by helping them meet deadlines and budgets, adapt to changes in supply or demand, pinpoint potential delays, improve communication with suppliers, and more.

Location: New York City, NY, USA

Best for: Creating greater visibility in your supply chain

Arka

Founded in 2015, Arka is dedicated to helping businesses curate a custom brand experience through sustainable packaging materials. Arka offers low minimums, premium materials locally made in the USA, quick turnaround, and flexibility to scale.

Location: San Francisco, CA, USA

Best for: Creating branded, sustainable packaging solutions

Cin7

With Cin7, business owners are able tailor inventory and order management to suit their respective needs. Brands can connect products, sales channels, warehouses, workflows, reports, and more.

Location: Auckland, New Zealand

Best for: Connecting your sales channels, inventory and accounting together

Cogsy

A self-proclaimed “extra Head of Operations,” young startup Cogsy is logistics technology that inputs a business’s data to create accurate forecasts and point them toward a direction of growth rooted in data-driven precision.

Location: Bristol, United Kingdom

Best for: Forecasting customer demand to help accurately manage inventory 

Gorgias

Based in San Francisco, Gorgias creates a better customer support experience by enhancing, automating, and speeding up the process for support teams and customers alike. Ecommerce brands can edit orders, refund payments, set automated tasks, close out tickets, and more directly from the Gorgias helpdesk.

Location: San Francisco, CA, USA

Best for: Centralising and automating customer support to provide a superior experience for shoppers

Happy Returns

Ecommerce businesses are able to retain revenue, reduce cost, increase customer loyalty, and more with Happy Returns’ omni-channel return management platform. Backed by parent company PayPal, Happy Returns assists both customers and business owners by making returns easy.

Location: Los Angeles, CA, USA 

Best for: Simplifying returns in order to create a better experience for both customers and ecommerce businesses

Inventory Planner

With Inventory Planner’s numerous features, brands can keep their online store and warehouse stocked. Businesses are able to automate reorder processes, create purchase orders, connect sales channels in one place, get suggestions on old stock to move, and much more. Inventory Planner was acquired by Brightpearl, an omnichannel retail operating system, in 2021.

Location: Paris, France

Best for: Forecasting inventory in order to understand exactly what to order and when to order it

Linnworks

Businesses are able to gain control of their operations and connect all of their platforms with Linnworks via desktop or mobile app. With nearly a decade under their belt, Linnworks’ logistics platform allows brands to effortlessly manage platforms to gain insights about their business and optimise fulfilment.

Location: West Sussex, United Kingdom 

Best for: Integrating your business operations, such as inventory and order management, to manage them in one place

Loop

With an emphasis on exchanges, Loop helps online retailers turn returns into additional revenue. By encouraging customers to exchange products, Loop enables businesses to delight customers and increase their number of recurring customers.

Location: Columbus, Ohio, USA

Best for: Turning customers’ returns into exchanges

Route

Get real-time tracking information for last-mile deliveries complete with delivery status updates using Route, an emerging unicorn based in Lehi, Utah. With features such as “1-Click Protection” and an issue insight dashboard, customers will be delighted with shipping and delivery.

Location: Lehi, Utah, USA

Best for: Offering thorough order tracking from checkout all the way through delivery

Rush

Founded in Bulgaria in 2020, the Rush app allows business owners to increase revenue and customer satisfaction by nurturing customers post-purchase. Rush’s email or SMS notifications help reduce tracking inquiries and alleviate stress on customer support teams.

Location: Sofia, Bulgaria

Best for: Delivering shipping updates via email and SMS

Shippo

With over 100k customers, Shippo has become a cornerstone of ecommerce business operations. Shippo aggregates merchant’s shipping needs into one platform to get the best courier rates, find the best shipping option for orders, and more.

Location: San Francisco, CA, USA

Best for: Creating shipping labels and identifying shipping discounts

Tusk Logistics

Tusk Logistics provides ecommerce businesses with pre-negotiated rates from top regional couriers in order to reduce shipping costs, decrease transit times, and boost customer satisfaction. Their software integrates with a brand’s existing tech stack in order to print labels whenever Tusk is the best shipping option for a parcel. 

Location: Chicago, Illinois, USA

Best for: Getting the best rate for regional shipping couriers

ShipBob: The leader in tech-enabled 3PLs

Founded in 2014 in Chicago, ShipBob was established by entrepreneurs Dhruv Saxena and Divey Gulati who identified a need for more efficient fulfilment and shipping. ShipBob achieved unicorn status in June 2021 after securing $200 million in Series E funding. Bain Capital Ventures, Hyde Park Venture Partners, Menlo Ventures, Softbank, Silicon Valley Bank, and more have recently invested in ShipBob. In total, ShipBob has raised hundreds of millions of dollars in funding to operate a logistics network in the United States, Canada, United Kingdom, European Union, and Australia.

ShipBob is a technology company and fulfilment provider that has an all-in-one, out-of-the-box solution. While other logistics companies can do one or two things really well, ShipBob excels by providing many services (warehouse, inventory, and order management; fulfilment; shipping/shipment tracking; data analytics; demand forecasting; inventory planning and distribution) under one roof, making it simple for merchants.

Read this review to learn more about ShipBob’s logistics capabilities compare to other 3PLs.

Established logistics companies vs shiny startups

There are many moving parts when operating in the ecommerce industry. In order to navigate the space, using a logistics company is a best practice. The two most common options you’ll have when it comes to types of logistics companies to use are a traditional logistics company or a newer startup.

To help you decide which is a better fit for your business and operation style, here are some key differences between the two.

Established logistics companies

UPS, J.P. Hunt, CDW, and similar businesses may come to mind when you think of traditional logistics companies. Some of the world’s largest logistics companies are over 100 years old. With this many years of experience, there are various aspects to consider.

Pros:

• Established track record and decades of experience
• Many companies are publicly held
• Businesses have been awarded various prestigious accolades

Cons:

• Fees and requirements may not be feasible for small businesses
• Technology and processes may not be as advanced
• Resting on laurels of traditional systems and processes

New logistics startups

Shiny new startups are exciting alternatives to traditional logistics giants, but there are different factors to weigh.

Pros:

• Fast-paced atmosphere
• Designing systems and innovations that solve problems of today’s shippers
• More agile on fulfilling requests and custom solutions
• Many are SaaS companies

Cons:

• Less brand recognition
• May not be able to fulfil large scale requests

What to look for in a logistics startup

There’s a lot of criteria to consider when you’re thinking about partnering with a logistics startup. Here are some key details and ‘green flags’ to ensure you’re working with a worthwhile company.

Funding

Surveys show that one of the top reasons businesses fail is a lack of funding or cash flow. When a startup has significant funding, they are better able to operate their business, and are therefore able to be a better partner for your brand. Research what funding round the startup has reached to determine their level of fundraising.

Investors

Securing investors is a vote of confidence for a tech startup. Creating relationships with investors allows startups to secure cash flow to operate and implement their business.

Niche

When businesses focus on a certain niche within a larger market, they are better able to hone in on customers’ needs and provide solutions to remedy their pain points.

Track record

Look for a tech startup that has a robust track record and has proven their success, timeliness, and adherence to SLAs. Focus on companies that have a reputable online presence and has relationships with credible industry organizations or groups.

Testimonials

Over half of buyers will use a startup if it has a star rating of 4 or more which reveals how important testimonials and social proof are to successful startups.

Logistics startups FAQs

Here are answers to the top questions about logistics startups.