Leading Last-Mile Carriers Boost US Operations with New Sortation Centers

Instructions

In a strategic move to bolster their presence in the competitive last-mile delivery sector, two key parcel carriers, Gofo and Veho, have unveiled significant expansions to their U.S. operations. Gofo has inaugurated its flagship U.S. super hub in Newark, New Jersey, with plans for a second major facility in Los Angeles, signaling its evolution from a regional operator to a national courier. Concurrently, Veho has opened an enlarged regional distribution center outside Atlanta, dramatically increasing its capacity for processing e-commerce parcels. These developments highlight a broader trend in the logistics industry toward enhanced infrastructure and efficiency to meet the escalating demands of online retail and improve delivery speeds across the nation.

Gofo's new Newark facility is a sprawling 400,000-square-foot complex, representing a substantial investment in advanced logistics technology. This state-of-the-art center is equipped with sophisticated cross-belt and narrow-belt sorters, cutting-edge robotic automation, and an intelligent logistics management system. These technological integrations enable the hub to process over 40,000 parcels per hour, with a daily throughput exceeding 700,000 packages. The company's expansion plans, including the upcoming Los Angeles center, are supported by a $150 million investment aimed at strengthening its middle-mile and last-mile delivery capabilities for e-commerce clients. This funding will cover long-term leases, facility upgrades, the implementation of advanced sorting and robotics, IT infrastructure enhancements, and the recruitment of skilled personnel, all designed to ensure robust capacity, especially during peak seasons.

Founded in 2023 by Chuan Zhen, an entrepreneur with a rich background in logistics and cross-border e-commerce, Gofo has quickly established itself in a market invigorated by the post-pandemic e-commerce surge. The company initially served a large volume of e-commerce merchants primarily linked to China but is now rapidly expanding its client base among North American retailers and smaller online businesses. While international parcels are handled by partner customs clearance companies, the majority of Gofo's shipments originate from domestic U.S. warehouses, with its core operations, leadership, and strategic decisions firmly centered within the United States. Gofo's rapid growth has led to the establishment of nearly 100 hubs and stations nationwide, supported by over 30 linehaul routes, and a workforce exceeding 1,000 full-time employees, complemented by delivery service partners for physical last-mile operations.

Currently, Gofo's extensive network reaches 8,000 zip codes, providing service to approximately 70% of the U.S. population, including Hawaii and Puerto Rico. The company projects further expansion to 10,000 zip codes by the close of 2025, aiming to deliver 75% of client parcels through its own integrated network. Beyond domestic growth, Gofo has also made strides in international markets, exemplified by its acquisition of Cirro Parcel in France in August 2025, with existing operations already in the Netherlands and Italy. This global footprint, combined with its ability to offer next-day delivery around major hubs and three-to-five day delivery across states and regions, positions Gofo as a significant player in the parcel delivery landscape, challenging established carriers like FedEx and UPS with competitive pricing and innovative technology platforms.

Simultaneously, Veho, another rapidly expanding last-mile delivery specialist, has enhanced its U.S. infrastructure with a new 150,000-square-foot regional distribution center near Atlanta. This facility, located in Lawrenceville, Georgia, is three times larger than Veho's previous regional hub and boasts 32 dock doors, a significant upgrade from its predecessor's eight. This increased capacity is crucial for managing the surges in shipments characteristic of the holiday peak season. The site, previously occupied by the defunct delivery startup Pandion, was secured by Veho under a lease agreement for over three years. This hub will serve as a vital operational center for Veho in the Southeast, facilitating e-commerce brands in injecting parcels for nationwide delivery. Leveraging a network of 85,000 crowdsourced drivers and an advanced tech platform for efficient package matching and delivery, Veho has seen its parcel volumes double this year, largely due to a substantial influx of new clients. The company's network now spans 56 markets, covering 38% of the U.S. population, further solidifying its growing influence in the e-commerce logistics domain.

These strategic infrastructure investments by Gofo and Veho underscore a dynamic period in last-mile logistics, driven by the sustained growth of e-commerce. Both companies are aggressively expanding their capabilities to offer faster, more reliable, and cost-effective delivery solutions. Gofo's comprehensive U.S. super hubs and international acquisitions, alongside Veho's enhanced regional distribution centers and crowdsourced driver model, reflect a shared commitment to innovation and market penetration. As they continue to expand their reach and optimize their operations, Gofo and Veho are set to redefine expectations for parcel delivery, providing robust alternatives to traditional carriers and significantly impacting the future of e-commerce fulfillment.

READ MORE

Recommend

All