Packfleet, a London-based logistics startup known for its electric vehicle deliveries, has announced that it will cease operations as DHL takes over its customer base and deliveries. The company, which has served businesses with sustainable logistics solutions for four years, will see its drivers and warehouse staff transition to DHL. This move reflects DHL’s growing focus on expanding its green delivery services across London and beyond. Packfleet’s decision follows a year of collaboration with DHL and comes shortly after securing significant funding.
Packfleet previously raised €9.1 million in a Series A funding round, co-led by General Catalyst and Voyager. The company’s approach to logistics, which emphasized real-time tracking and flexible delivery options, gained attention from businesses seeking efficient delivery management. DHL’s acquisition of Packfleet’s operations aligns with its broader push for eco-friendly logistics solutions. While Packfleet is shutting down, DHL’s investment in sustainable delivery services signals continued growth in this space.
What led to the transition?
DHL has been Packfleet’s primary partner for nationwide deliveries over the past year, making the transition a natural step. The acquisition enables DHL to strengthen its green logistics offerings while integrating Packfleet’s technology and workforce. Many of Packfleet’s employees will join DHL, ensuring continuity in service quality. By incorporating Packfleet’s customer base, DHL extends its reach in the UK’s last-mile delivery sector, reinforcing its position in the market.
How will DHL integrate Packfleet’s services?
DHL plans to continue servicing Packfleet’s former customers with its premium delivery offerings, expanding beyond London to a nationwide scale. By leveraging Packfleet’s expertise in electric vehicle deliveries, DHL aims to enhance its sustainability initiatives. This transition is expected to improve efficiency while maintaining Packfleet’s emphasis on real-time tracking and flexible delivery management. The move also aligns with DHL’s broader sustainability strategy, which includes reducing emissions in urban logistics.
Packfleet was founded in 2021 by former Monzo employees Hugo Cornejo, Tristan Thomas, and Josh Garnham. The startup built a reputation for its customer-focused delivery technology, which allowed recipients to track orders, update delivery details, and receive precise estimated arrival times. Over the years, Packfleet has facilitated millions of deliveries and partnered with numerous merchants across London. The company’s closure marks the end of its independent journey but integrates its innovations into DHL’s growing delivery network.
The rise of sustainable logistics has seen both startups and larger corporations invest in electric vehicle fleets and technology-driven solutions. Companies like Amazon (NASDAQ:AMZN) and FedEx have also expanded their eco-friendly delivery initiatives, highlighting the increasing demand for green logistics. Packfleet’s model demonstrated how smaller players could influence industry trends, and its integration into DHL reflects the industry’s movement towards more sustainable practices.
The closure of Packfleet and its assimilation into DHL’s delivery network underscore a shift in urban logistics. For businesses relying on Packfleet’s services, the transition promises broader coverage and sustained service quality. However, this also raises questions about the future of independent, sustainability-focused delivery startups as larger logistics firms consolidate the market. As DHL strengthens its green delivery infrastructure, the impact on competitors and emerging startups will be worth watching.
