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In Los Angeles, a trip to the post office can be a nightmarish experience, but, starting today, Angelenos will no longer have to suffer the long lines, fluorescent lights, and stale 90’s music that have become inherent in the shipping process.
Shyp, an on-demand shipping valet, has launched today in LA and hopes to save residents from the arduous drive to the post office. The app simply requires the user to take a photo of what they are shipping, press a button, wait up to 20 minutes for a courier, and then watch as their items are packed and shipped. The user is charged the standard shipping rate plus a five dollar fee for the service — regardless of the size and destination of the shipment. Shyp says their fee will decrease over time as more users begin using the service.
After success in both New York City and Miami, Shyp raised $50 million in funding in April 2015. Led by the venture capital firm KPCB, the funds were used to begin the expansion to Los Angeles and Chicago.
Shyp launched in beta in LA four weeks ago and the city quickly tallied up three times more shipments and pickups than any other beta launch. The company has settled in to a 20,000 square foot packaging and shipping facility in Commerce and is looking to add 12 employees to their 50 person team.
“Shyp is a solution for everyday consumers,” says Andrew Wyatt, Head of Operations for Shyp. “It’s a huge market that no one has reached, from professionals with busy schedules to full-time moms who just don’t have the time to go to the post office.”
Wyatt believes Shyp will quickly gain traction with LA’s fashion scene by allowing stylists to conveniently send clothing samples back and forth between clients and designers. For the casual online shopper, the app contains a feature called Shyp Returns. The company reports that e-commerce returns make up 25 percent of Shyp’s overall business.
In the age of Amazon Prime, users expect a high level of punctuality, making Shyp’s logistically strategy vital to its scalability. By placing vans throughout the city, the company has created a node system that allows couriers in bikes and cars to have convenient intermediaries in order to uphold their 20 minute guarantee.
Despite their growing popularity, Shyp has maintained an understandably patient approach to their national expansion. After reporting a 20 percent growth month over month, Shyp believes its expansion to Los Angeles and Chicago will continue to grow its user base at a steady rate.
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