October 11, 2019

Estes Express teams with on-demand warehouse startup

Partnership with Warehowz taps into "next big step in the supply chain industry," Estes says.

By DC Velocity Staff

The market for on-demand warehousing and services continues to grow, as logistics technology startup Warehowz said Thursday that it has teamed up with the less-than-truckload (LTL) freight carrier Estes Express Lines Inc.

Glen Allen, Virginia-based Warehowz offers an online platform for on-demand warehousing and services, saying its platform helps warehouse owners maximize their assets and allows companies of all sizes to utilize needed space for short-term solutions.

The company now plans to expand that service through a partnership with Estes, which it called a "complimentary service provider" which will provide an unspecified investment and integration of sales.

Terms of the deal were not disclosed.

"On-demand warehousing is the next big step in the supply chain industry," Pat Martin, vice president of corporate sales and strategic planning at Richmond, Virginia-based Estes, said in a release. "The Warehowz solution is much needed and will create many revenue-generating opportunities for its customers."

Investors have begun funneling money into the on-demand warehousing sector, highlighted by a $43 million venture capital round raised by the Seattle-based warehousing and fulfillment company Flexe in May. Flexe said at the time that it plans to accelerate the development of its technology platform, more than double the size of its team, and continue to build the on-demand warehousing category.

Warehowz sounded equally optimistic after announcing its partnership. "The Estes partnership brings validation to our growing business," Warehowz CEO Darrell Jervey said in a release. "They are a highly respected national player in the logistics and supply chain management market and bring with them a history of success. As their newest partner, Warehowz plans to work with them to expand our brand and improve our service offering."

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