The rapid growth of e-commerce giant Shein has led to the creation of a new US-based delivery service, SpeedX, which is increasingly handling packages for shoppers across the country, the Wall Street Journal reports.
Specializing in small international parcels, SpeedX primarily handles the low-cost items Shein ships directly from China, such as dresses and T-shirts.
Unlike traditional parcel carriers like FedEx or UPS, which focus on fast delivery and frequent tracking updates, SpeedX takes a more budget-conscious approach, prioritizing cost savings and getting small packages off cargo planes and into customers’ hands. The company does not own its own delivery trucks or hire drivers directly; instead, it relies on independent contractors for the “last mile” of delivery.
The simplicity of SpeedX’s model has both advantages and drawbacks for customers. Some shoppers appreciate the low cost, with SpeedX’s prices generally undercutting those of major carriers like FedEx and UPS, which can charge around $12 for ground delivery. However, the service’s no-frills approach can sometimes leave consumers frustrated. While some customers report their packages arriving within 8 to 12 days, others have experienced issues with tracking information not working or packages being marked as delivered when they have not arrived.
“I lost $300 from three orders since September that I believe SpeedX never delivered,” said Hunter Moore, a resident of Concord, New Hampshire, who typically receives orders via the US Postal Service but encountered problems with SpeedX deliveries.
Despite these challenges, SpeedX executives say they are investing in improvements to prevent missed deliveries, including enhanced address validation tools and the option for consumers to provide more specific delivery instructions. The company, which began operations in 2022, plans to handle between 350,000 and 400,000 parcels per day during the upcoming holiday season. While that volume is small compared to the massive operations of UPS, FedEx, and the US Postal Service, it could place additional pressure on these giants as they compete for parcel deliveries.
Chris Zheng, SpeedX’s founder and CEO, noted that his company’s expertise in expediting border clearance is key to its success.
“Between aircraft arrival to the final mile, that piece we call a black hole,” he explained.
Zheng emphasized that SpeedX can cut delivery time in half compared to traditional services, while keeping costs lower.
SpeedX started delivering packages in New York in 2022 and has since expanded to major cities such as Los Angeles, Dallas, Miami, and Chicago, reaching nearly a quarter of the US ZIP codes. The company handles a significant share of packages from Shein, as well as from other e-commerce platforms such as Amazon and Temu.
Industry experts like Satish Jindel, president of ShipMatrix, see services like SpeedX as a growing part of the parcel delivery landscape.
“Last-mile delivery is a service you can get without a national network like FedEx and UPS,” Jindel said.
He noted the rise of similar carriers serving e-commerce companies from China.
