UPS on Monday announced Monday that it was selling off its on-demand warehousing business Ware2Go to order fulfillment company Stord, for an undisclosed price.
Atlanta-based Stord founder and CEO Sean Henry said the acquisition will enhance its competitive edge as seeks to take on Amazon and other efufillment providers.
Henry told CNBC that the acquisition builds on the company’s push to “level the playing field” against companies such as Amazon Prime for checkout and fulfillment services for smaller businesses by offering the type of infrastructure market leaders have.
“The hardest problem for all these independent merchants across the rest of the internet and trying to compete with Prime is really scale,” Henry told CNBC, adding that. “Logistics is still a physical world where you need a lot of packages, a lot of inventory spread very close to a lot of consumers to be able to offer that level of rapid delivery.”
Stord said the deal adds 21 new fulfillment centers to its network, including 2.5 million square feet of DC space and an end-to-end platform of warehouse management system (WMS), order managed system (OMS), and customer experience (CX) software.
Stord says that adds to its current network of 11 facilities in North America, now making it one of the largest fulfillment networks in volume and reach.
Founded in 2018 as a UPS subsidiary, Ware2Go specializes in asset-light, direct to consumer (D2C) and business to business (B2B) fulfillment across an array of industries, including ready-to-drink beverages, skin care, supplements, and electronics.
Stord, founded in 2015, has made a number acquisitions in recent months, acquiring both Pitney Bowes’ ecommerce fulfillment business and freight and logistics platform ProPack in 2024.
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“We are in a unique period for e-commerce and retail as brands struggle to manage through shifting global trade policies. Even with macro uncertainty, e-commerce end consumers still expect rapid delivery, perfect order accuracy, easy returns, and more,” Henry stated in a release. “This acquisition of Ware2Go is a strategic investment that expands our U.S. domestic footprint and capabilities while strengthening our partnership with UPS. This partnership will allow us to deploy our technology across the Ware2Go network, enhance offerings for our joint customers, and combine our scale to be one of the largest fulfillment networks in North America.”
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