Supply Chain Industry News: Shyp Releases Shipping Cost Comparison App
It’s happening again. For the second year in a row, Fed Ex and UPS have announced a 4.9% increase in ground shipping rates that will take effect after the holidays. This is bad news for small e-businesses that struggle with the cost and logistics of shipping, considering that the USPS raised their priority flat rate box prices by 9.5% in January of 2016. Fortunately, a new app by a company called Shyp is taking the guess-work out of finding the lowest rates.
When the high cost of shipping drove eBay seller, Kevin Gibbon, out of business, he founded Shyp in 2013. It’s an innovative service aimed primarily at businesses needing affordable bulk shipping options. Shyp quickly spread from its base in San Francisco to Los Angeles, Chicago and New York. In 2015, it partnered with Ebay to link customer accounts to the service, providing the convenient, integrated shipping Gibbons envisioned.
What makes the company different is its Uber-like approach. As reported by the Washington Post on October 7, 2016, “You take a photo of your package, request a pickup, print a label and a courier will come to your location and do the packaging and delivery. The service starts at just $5 per pickup (plus the cost of packaging and shipment which is discounted based on volume) and you can track all the shipments on a mobile or desktop app. Shyp’s couriers are either independent contractors or employees who get paid per job – very similar to Uber’s driver model.”
The pickup and packing options are only available in the 4 cities where Shyp has warehouses, but businesses nationwide can now save money using Shyp’s new price comparison tool. Similar to travel sites that compare airfare and hotel rates, the app is a public version of the delivery selection tool the company uses.
Sign up for a free account, input your pickup location, destination and package size, choose the best shipping option for your package, then pay and print the label. Labels are free for the first 90 days, then a 50 cent fee will apply. Users will have to take their packages to the shipper they choose, but Shyp estimates that using the app can save them an average of 30%.
There’s even more good news on the horizon. Shyp plans to use customer data from the app to decide where to locate additional full-service facilities. Said Gibbons in an interview for FastCompany, “When we do expand, we want to be aggressive. It’s not going to be one or two markets, it’s going to be a massive expansion.”