Veho expands again, adding new Midwest cities to last-mile delivery network

Signs directing delivery drivers

Last-mile delivery and return logistics platform Veho is continuing its rapid expansion, announcing on Tuesday that it has expanded to two new Midwest cities with a third coming before the end of the year.

The company recently opened facilities in Cincinnati and St. Louis, joining existing locations in Chicago, Indianapolis and Milwaukee. Veho will add Cleveland to its network in the fall, bringing its e-commerce-focused logistics operation to six Midwest markets by the end of the year, and 22 total cities in five U.S. regions.

“As we continue to scale our premium customer experience across the U.S., doubling down on our growing Midwest customers and partners was a natural next step. We continue to focus on expanding our footprint in areas where our clients see the most value and are looking forward to bringing a new, customer-first delivery experience to the Midwest,” said Itamar Zur, co-founder and CEO. 

Next-day e-commerce

Veho leverages in-market warehouse locations and a dynamic marketplace to match demand for e-commerce deliveries with last-mile driver partners. Like other gig-based last-mile delivery companies, Veho uses a crowdsourced driver network. Unlike other networks, though, the company creates routes of deliveries that last between two and six hours, ensuring the drivers have a steady amount of work and consistent pay for the hours they choose to work.

E-commerce shippers can ship items into Veho’s facility, where it will be sorted and matched with deliveries from other companies along routes from which drivers may choose. Once a route is booked, the driver heads to the local Veho warehouse to pick up the orders and begin the delivery day.

More about Veho

Read: Veho raises another $170M six weeks after reaching unicorn status

In most cases, the items can be delivered by the next day. Veho offers a returns service.

Veho said the new locations will add over 100 full-time employees by the end of 2023 as operations scale. The company added that “thousands of independent driver-partners are already using the Veho app.”

Veho facilitates next-day delivery from a brand’s distribution center all the way to customers’ doors via its technology platform and network of independent drivers. Veho’s Midwest market will have over 300,000 square feet of warehousing space after the opening of the Cleveland hub.

“We couldn’t be more excited about our Midwest expansion. In addition to bringing Veho’s best-in-class customer experience to the region, our Midwest facilities will provide excellent full-time jobs, as well as convenient and flexible work opportunities for driver-partners,” said Matt Neururer, general manager for Veho Midwest.  

Florida expansion

In May, Veho announced its expansion into Florida with facilities in Fort Lauderdale, Miami and Orlando. Jacksonville and Tampa are to follow later this year. Veho also has operations in Washington, D.C., and major cities in Colorado, Texas, Illinois, Indiana, Georgia, North Carolina, Maryland and Pennsylvania.

In December, Veho announced a $125 million series A round of funding led by Construct Capital with additional participation from Bling Capital, Industry Ventures, Fontinalis Partners and Origin Ventures. Total funding in Veho is $129.2 million, according to Crunchbase. The latest funding came with a valuation of $1 billion.

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