Shyp makes it easy for people to ship their goods. You simply take a picture of what you want to ship and Shyp’s couriers (called Hero’s) pick up the item from you within 20 minutes. They then take it to a warehouse where it’s packaged and shipped using existing shipping services like DHL, FedEx, and USPS.
Shyp has established large volume contracts with each of these services. This allows it to obtain a lower per unit price than if you were to ship a single item. It passes on part of the gains from this lower per unit price to the consumer and charges a $5 pickup fee to cover its courier costs. The aggregate result is a more convenient service at a lower price for the consumer.
Shyp has also partnered with e-commerce companies like Amazon and Target to facilitate customer returns of e-commerce purchases. By making it easier for customers to return the goods they buy online, Shyp has the potential to increase e-commerce penetration.
Together with the funding announcement, Shyp started its beta service in Los Angeles. This is its fourth city after San Francisco, New York City, and Miami.
Like similar services for transportation, food, and goods delivery, Shyp is a great example of an end-to-end service that’s made possible through smartphones. We really like such businesses and that’s why we invested in Postmates. We’re also very excited to be onboard for Shyp’s journey.