Stord Acquires Ware2Go from UPS to Challenge Amazon's Rapid Delivery Dominance

Logistics company Stord has made a significant move by acquiring Ware2Go, a subsidiary of UPS that specializes in third-party delivery services. This acquisition adds 21 fulfillment centers to Stord’s existing network, bringing their total to over 30 locations across North America.

Sean Henry, the CEO and co-founder of Stord, expressed enthusiasm about the deal: “Bringing Ware2Go into our fold is a smart investment that enhances our capabilities within the U.S. and deepens our collaboration with UPS.” He emphasized that this partnership will enable them to leverage technology throughout the Ware2Go network, improving services for their shared customers and creating one of North America’s largest fulfillment networks.

With this acquisition, Stord gains an additional 2.5 million square feet of storage space on top of its own 11 facilities and more than 70 partner sites. The collaboration aims to provide brands with swift and dependable shipping solutions so they can effectively compete against major players like Amazon.

Henry pointed out a key challenge for smaller online retailers: “For independent merchants trying to take on Prime, scale is everything.” He noted that logistics remains grounded in physical realities—having ample inventory close to consumers is crucial for fast delivery.

Ware2Go was launched by UPS in 2018 with the goal of helping small- and medium-sized businesses reach their customers efficiently.It caters to both direct-to-consumer (D2C) and business-to-business (B2B) shipping needs across various sectors such as beauty products, tech gadgets, beverages, and health supplements.

Archita Prasad from UPS Digital shared her excitement about the partnership: “Stord’s acquisition means Ware2Go clients will gain access to superior scale and innovative solutions.”

Stord’s clientele includes notable brands like True Classic T-Shirts, AG1 nutritional supplements, quip oral care products, Sundays for Dogs pet supplies, and Seed Health probiotics. In just one year—2024—the company facilitated nearly 1% of all online sales during black Friday and Cyber Monday while shipping over a billion units. Remarkably,Stord has managed profitability even as it expands through acquisitions.

This latest acquisition follows several others in recent months—including Pitney Bowes’ e-commerce fulfillment division—and comes shortly after Stord secured $200 million in Series E funding at a valuation reaching $1.5 billion.

Henry founded Stord at just 18 years old after being awarded a spot in the Thiel Fellowship program instead of continuing his studies at Georgia Tech. He believes that building proprietary technology alongside operational processes gives them an edge: “When we control every aspect from start to finish,” he saeid during an interview with CNBC,” it becomes challenging for competitors.”

Details regarding the financial terms of this deal remain under wraps but signal exciting developments ahead for both companies involved.