In addition to overall positive Q1 results, Boxed announced an expanded collaboration with FedEx to increase its delivery capabilities.
E-commerce grocery platform Boxed, which offers bulk pantry consumables to households and businesses and licenses its e-commerce software to enterprise retailers, will reduce the amount of money it spends on transportation across its fulfillment centers thanks to a multi-year deal with FedEx, which will now deliver a majority of customer shipments for the company.
The expanded collaboration will give more Boxed customers access to deliveries seven days a week, and the company said it will invest the transportation savings into better customer pricing and product promotions.
“In this challenging supply chain environment, e-commerce companies are seeking new avenues to counter escalating costs, and provide the best possible service to their customers,” said Chieh Huang, CEO at New York-based Boxed. “This enhanced alliance with FedEx provides us with the opportunity to address both.”
FedEx has been a Boxed partner since 2013, and the increased shipping capabilities brought about by this expanded collaboration will help Boxed provide better customer service and a more consistent delivery experience across the country.
“The collaboration between FedEx and Boxed demonstrates how e-commerce providers and shipping companies can craft new solutions to collectively meet our customers’ new demands and needs today and tomorrow,” said Ryan Kelly, VP of e-commerce, SAM and retail marketing at FedEx. “We’re proud of this alliance and look forward to enabling Boxed and its retailers access to supply chain flexibility and capability that is unrivaled in the marketplace. It is what’s next for businesses of all sizes.”
Aside from the partnership, Boxed has had a busy month. On May 11, the company shared positive news about its first quarter financial status, including a 14.1% boost in net revenue compared to a year ago, and an 11.3% rise in net revenue. Additionally, Boxed recapped some of its business moves during the first part of its fiscal year, including the recent expansion of its leadership team.
New York-based Boxed operates an e-commerce retail service that provides bulk pantry consumables to businesses and household customers, without the requirement of a “big-box” store membership. The service is powered by the company’s own purpose-built storefront, marketplace, analytics, fulfillment, advertising and robotics technologies. Boxed further enables e-commerce through its software and services business, which offers customers in need of an enterprise-level e-commerce platform access to its end-to-end technology.