Veho has obtained a $1B valuation after securing $125M in Series A funding.
The cash influx will enable the company to grow its team and expand from 14 to 50 US markets by the end of 2022.
Already growing 40 times in revenue since June 2020, the company currently has 400 employees. Less than 18 months ago, Veho only employed 15 staff members.
So, what is the key to their skyrocketing success? Reimagining the delivery process.
Consider the following customer query: “Where is my stuff?” After decades of CX innovation, this query still clogs up contact centres, representing a significant pain point within customer journeys. Veho hopes to banish it once and for all.
To do so, the start-up applies technology to reinvent how packages travel from distribution centres to customers.
Providing real-time communication throughout the entire process, Veho offers customers the option of when, where and how customers want their packages delivered.
The company also takes advantage of a crowdsourcing model to secure the services of drivers. Its technology matches package demand with these drivers, in an attempt to improve their experience, alongside CX.
Discussing their innovative concept, Itamar Zur, CEO and co-founder of Veho, says:
We’re providing eCommerce brands [with] a fast, tech-forward and customer-centric delivery option that ensures brand perception makes it past the purchase, all the way through to the customer door.
Despite avoiding some of the usual logistical and shipping pitfalls through its advanced technology, Zur also credits many other factors for Veho’s success. In particular, he highlights: “A culture that places the customer experience at the centre of everything we do and our partnership with professional and qualified crowdsourced drivers.”
Also, the ability to quickly evolve CX is helping the company make waves within the industry. As a start-up, Veho is not bound by the same longstanding process that slows down the CX transformation projects of its competitors.
Such agility within the role of “last-mile logistics” is not only disruptive but more critical than ever before within the eCommerce field. For General Catalyst, the venture capital company that led the Series A raise, this is undoubtedly the case.
As Kyle Doherty, Managing Director at General Catalyst, says:
Veho is bringing much-needed innovation to a space that has for years struggled to keep up with the dramatic increase in demand while focusing on a superior consumer experience.
Continuing to bolster CX, Veho will soon introduce and scale its doorstep returns programme to provide its partners in eCommerce with a competitive advantage.
In addition, it will create and leverage more opportunities for delivery drivers, who may choose to join the platform and take charge of their work schedule.
Yet, in terms of its chief long-term mission, Veho soon wishes to compete alongside the industry’s largest shipping companies. With their rapid expansion plan and a proposition created entirely around eCommerce customer needs, it perhaps will not be long until the company firmly establishes its presence on the national stage.
