New York-based e-commerce software and fulfillment provider ShipHero announced Tuesday morning it is splitting off its fulfillment business into a 3PL subsidiary, named LVK, to better serve customers.
As the freight recession continues, companies across numerous sectors of the industry, including fulfillment, trucking, tech providers and more, are shutting down or experiencing massive layoffs. Launching LVK as a separate entity while retaining the experience it has earned in the almost five years ShipHero’s fulfillment service has been in operation could allow for better future-proofing and more personalized customer service.
"We needed to provide our customers with sharper clarity and market differentiation,” says LVK CEO Maggie Barnett. “ShipHero CEO Aaron Rubin and I made the strategic decision to uncouple LVK from the parent company because great fulfillment takes more than just great technology. LVK’s 3PL network runs on ShipHero’s WMS platform, but the tech alone is not what compels brands to choose and stick with our fulfillment team for years. It is our reliability and our ability to provide complex, creative fulfillment for our merchants that makes us indispensable partners."
ShipHero is one of numerous companies in the shipping space looking to separate or at times even completely offload their fulfillment business. Recently, Pitney Bowes sold its e-commerce fulfillment service to Stord. This trend is likely to continue.
Fulfillment experience
LVK begins with seven locations across the U.S. and Canada and has more than 80 engineers. It will continue to use ShipHero’s warehouse management system for its operations. The 3PL services include direct-to-consumer pick and pack, e-commerce fulfillment, fulfilled by merchant, B2B fulfillment, and special project management.
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