Tusk Logistics throws hat into US parcel ring

Tusk Logistics, a new player in the U.S. parcel-delivery market, made its debut last month at  Manifest in Las Vegas, adding to the small but increasing fragmentation of companies in the field.

Based in Chicago, Tusk uses its data platform to support the networks of four regional carriers, said Ben Emmrich, the company’s co-founder and CEO. Tusk is actively courting a fifth. 

Tusk operates an asset-light network but remains deeply involved in its carrier partners’ operations. It manages the pickup and direct injection of the package at the carrier’s closest hub. It then provides real-time monitoring and oversight of the final delivery to the consignees.

Tusk is aiming at professional shippers, such as a direct-to-consumer e-commerce merchant that owns fulfillment facilities and ships between 100 and 1,000 parcels a day. These business typically have $1 million to $10 million in annual revenue and are staffed by at least five employees, Tusk said in a press sheet.

Tusk charges about 40% less than the typical carrier, Emmrich said in an interview with FreightWaves. Shippers enrolled in the platform pay a monthly “platform” fee based on the savings they accrue.

Tusk, founded in 2021 by Emmrich and Adam Hipp, moves thousands of parcels per week, according to Emmrich. He declined to give a more specific number.

One of Tusk’s carrier partners is LSO, an Austin, Texas-based regional delivery carrier. LSO announced recently it had added Tennessee to its seven-state delivery network. LSO also serves Mexico. Emmrich said LSO’s move will open up significant scale opportunities for Tusk because the carrier will be serving a larger population base.

At Manifest, Tusk also announced a $1.6 million round of pre-seed funding led by Forum Ventures with participation from Titletown Tech, Fulfillment IQ and MVMNT.

Tusk becomes the latest entrant in an increasingly crowded parcel-delivery marketplace. It was fueled by growth during the pandemic and shippers’ desire to diversify their carrier base after FedEx Corp. and UPS Inc. began raising prices and surcharges.

“Shippers need true value and they need to diversify away from the big carriers,” Emmrich said.

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Source: freightwaves - Tusk Logistics throws hat into US parcel ring
Editor: Mark Solomon