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Former Amazon Logistics Exec Raises $8 Million to Help the Competition


Courtesy of Shipium
Shipium creates decision-making software to help retailers fight back against Amazon s speed.
Cofounder Jason Murray spent 19 years building Amazon s e-commerce supply chain.
Shipium has raised $8 million to expand its reach among legacy retailers like Macy s.
While most traditional retailers know e-commerce is essential  and are working on improving their execution they re still not making much money through online sales. The pressure to deliver fast eats into profits. Package carriers like UPS and FedEx continuously upping what they charge isn t helping. 
Nordstrom, Kohl s, Stitch Fix, Macy s … nearly every retailer has bemoaned the hit to margins the shift to e-commerce has delivered in the last few months. What they need, according to the cofounders of Seattle startup Shipium, is a couple of decades experience at Amazon which happens to be just what Shipium is selling.  ....

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Gig Players Like DoorDash and Shipt Threaten UPS and FedEx


DoorDash
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Target s new delivery strategy shows FedEx and UPS are being disrupted by the gig economy.
Top analysts see gig startups taking volume from UPS and FedEx. 
Startups are raising millions to build gig-backed delivery networks.
Target is making a tweak to its e-commerce logistics strategy and good results could be bad news for UPS and FedEx. 
The retail giant will use Shipt drivers to pick up e-commerce packages at its new sortation center in Minneapolis for delivery directly to customers, COO John Mulligan announced earlier this month.  ....

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Why VCs are now funding long-avoided warehousing startups


ShipBob
The pandemic boosted e-commerce and brought more venture capital funding to logistics startups.
VCs have traditionally avoided asset-heavy startups.
In 2020, asset-heavy e-commerce logistics startups raised more than $450 million.
When Dhruv Saxena first started fundraising for his startup ShipBob in 2014, he knew that finding the right investors was just as important as funding his startup at all. Seven years later, his most recent round was led by SoftBank with Y Combinator, Menlo Ventures, Bain Capital Ventures, and Hyde Park Ventures in tow. 
Saxena founded ShipBob with the intention of seizing on a particular segment of e-commerce businesses. Third-party logistics companies that handle warehousing and fulfillment had fallen behind in their technology adoption, as Saxena tells it. Their manual processes meant small customers didn t have a place in their business model since it cost too much to onboard and support them. ....

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