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Parcel delivery startup Gofo has acquired Cirro E-commerce, an end-to-end provider of international small-parcel logistics services in the United States, Europe and Oceania, the latest stage in an infrastructure race between low-cost carriers to achieve scale in the last-mile delivery market.
Gofo also made two appointments to lead its commercial strategy and sales execution, including Ron Jansen from YunExpress, where he served as U.S. CEO, to be chief commercial officer, U.S. YunExpress is a subsidiary of Zongteng Group, a large, China-based provider of cross-border warehousing and logistics services for e-commerce sellers.
Integrating Cirro E-commerce’s U.S. market expertise, customer relationships and established retail integrations with Gofo’s semi-national delivery network expands Gofo’s domestic reach and ability to provide more consistent service to e-commerce merchants in the U.S. market, Gofo executives said. Cirro specializes in domestic and cross-border parcel logistics.
“CIRRO E-Commerce brings strong local market expertise, high-performing commercial and customer experience teams, and established e-commerce integrations. Gofo brings network scale, automation, and operational discipline. Together, we will deliver a stronger, more seamless experience for U.S. shippers,” said Leon Li, CEO of Gofo U.S.
Gofo said it will retain Cirro E-commerce’s executive team and named Vincent D’Amata, who headed sales for Cirro, as chief sales officer, U.S. Terms of the deal were not disclosed.
In October, Cirro added Gofo to the list of last-mile carriers available to retailers using its shipping platform.
Gofo made the acquisition announcement from Manifest, a large supply chain conference held in Las Vegas, where it is promoting itself to shippers.
Gofo was founded in 2023 by Chuan Zheng, a U.S. citizen of Chinese heritage with extensive experience in logistics and cross-border e-commerce, who previously formed a company called Ebisu.
A significant share of historical volume has come from e-commerce merchants linked to China, but the U.S. business is rapidly expanding its presence among North American retailers and smaller online sellers. International parcels are customs cleared by partner companies, but the majority of shipments originate from U.S. domestic warehouses. The courier’s operations, leadership and decision-making are centered in the United States, the spokesman said.
Gofo has rapidly expanded its logistics foundation across the United States with nearly 100 hubs and stations supported by more than 30 linehaul routes. It currently has more than 1,000 full-time employees and uses delivery service partners to provide physical last-mile delivery.
Gofo recently said it processed over 60 million parcels during peak season — Thanksgiving to Christmas — with a sortation capacity of 3 million parcels per day during the busiest stretch. Its network remained stable, with a 99% delivery success rate, despite the surge in volume.
Gofo in October opened super hubs in Newark, New Jersey, and Los Angeles ahead of the peak shipping season. In addition to the $150 million investment, Gofo operates more than 100 automated hubs and stations and a U.S. line-haul network with more than 30 routes. Its delivery service, which provides next-day delivery around major hubs and three-to-five day delivery across states and regions, is available in 49 of the top 50 markets, according to the company.
The company also increased its app-based independent driver workforce by 30% year over year to ensure smooth operations. Gofo operates 1,500 self-owned and partner-operated vehicles, including 26-foot and 53-foot trucks that form the backbone of its nationwide network. Gofo said trucks achieved 99.5% on-time pick score and met service level agreements 95% to 99% of the time. Long-haul trucks carried up to 16,000 parcels.
Retailers are increasingly turning from legacy parcel carriers FedEx, UPS and the U.S. Postal Service, to smaller, independent providers that offer much lower rates. Many of the new carriers are investing millions of dollars to build regional and national networks, raising questions about how long they can sustain that growth.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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