SoftBank-Backed Veho Struggles as Logistics Startups Fail to Deliver

After landing nearly $300 million from investors including SoftBank and Tiger Global Management in back-to-back funding rounds in late 2021 and early 2022, delivery startup Veho planned an ambitious expansion that would bring its home dropoff services to 50 cities across the U.S. by the end of last year.

But Veho, which offers package deliveries for clients including HelloFresh and Rent the Runway, never got that far. Last year, after realizing how costly the expansion would be, Veho scrapped a launch in Los Angeles and other West Coast cities to focus on expanding in existing markets where it had a better shot at turning a profit, two people familiar with the matter said. Meanwhile, it has stumbled with a newer returns pickup service it introduced, as its existing clients balked at the cost.