Parcel carrier SpeedX said Monday it has acquired Accelerated Global Solutions, a cross-border e-commerce logistics provider, for an undisclosed price following a two-year partnership.
The new company will combine SpeedX’s last-mile delivery capabilities with AGS’ strength in freight forwarding and customs brokerage, and provide expansion opportunities for SpeedX’s domestic air zone-skipping service across the U.S., Canada and Puerto Rico. Both companies will continue to operate as separate brands. In 2024, SpeedX and New York-based AGS are expected to record combined revenue of more than $500 million.
SpeedX has an aggressive growth strategy and has rapidly grown its U.S. footprint in recent quarters. Founder and CEO Chris Zheng said his goal is to build a $1 billion factory-to-front-door logistics system within 18 months, but threatened U.S. regulation of low-value China shipments could be a hurdle. The company plans to expand next year in Southeast Asia, Australia, Europe and the Middle East through acquisitions.
“AGS has a sizable U.S. and Asia footprint. There is no doubt that this will help SpeedX offer a differentiated service,” said Derek Lossing, an e-commerce logistics expert and founder of Cirrus Global Advisors, in an email message. “What we don’t have for an integrated offering – outside of Amazon and the integrators – are firms that can fulfill from China, clear customs in the U.S., and deliver to the customer at an aggressive cost point. There is a clear value add to smaller and mid-sized companies that can use a one-stop shop at a cost far below the legacy delivery companies in the major metros. In addition, they will continue to leverage the largest China-based apps to fill their delivery networks and keep the final- mile delivery cost extremely cost competitive.”
SpeedX began next-day and second-day delivery service in New York City two years ago in response to the popularity of online ordering during the pandemic and has expanded its coverage to compete with couriers such as FedEx, UPS and OnTrac. The company says it now reaches more than 9,000 ZIP codes and has delivered 45 million parcels to date for online marketplaces, large retailers and fulfillment centers. It has a target of about 500,000 daily parcel deliveries in 2025.
With over 300 employees, AGS handles logistics for fast fashion, automotive, health care, technology, metal and seafood companies, in addition to e-commerce sellers and distributors. It manages outbound shipments from ports in China and Southeast Asia. North American warehouses are located in New York, Chicago, Los Angeles, Miami, Atlanta, San Francisco, Dallas/Fort Worth, Toronto and Portland, Oregon.
SpeedX inaugurated a zone-skipping program in April that offers two- and three-day delivery from origin airports to destination markets by leveraging its warehouse network. The company injects parcels into the U.S. Postal Service network at a section distribution center rather than post offices at the end of the line, a method preferred by large consolidators.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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