Frontdoor Collective challenges UPS and FedEx

Future. A new delivery super-company called Frontdoor Collective is assembling over a hundred smaller companies to take on UPS and FedEx. As the M&A fervor of tech and entertainment hits every sector, the economy is minting winners based almost entirely on scale and reach.

Last mile, best mile
A new competitor has entered the race to deliver your packages.

• Frontdoor Collective is rolling out nationally to complete “last mile” deliveries — the final stretch from delivery hub to destination.
• The company, which emerged from stealth Thursday, is actually a coalition of over 100 small delivery companies who mostly work for Amazon.
• Each participating company will essentially work as a franchisee of Frontdoor Collective, which gives them the ability to collaborate with partnering retailers.

Companies forming the collective were frustrated with limited growth opportunities, so they decided to team up to scale up.

Own your road
Frontdoor is already talking up a big game, claiming that it will be able to deliver a million packages a day throughout the U.S. right from the get-go. That’s music to Amazon’s ears, which needs all the support they can get to complete non-stop Prime deliveries. Notably, two of the co-founders of Frontdoor are former Amazon execs.

Frontdoor Collective is already looking toward the future: it’s allowing each franchised company that joins the collective to earn equity in the company, giving everyone a stake in success. Additionally, Frontdoor has inked a deal with EV-startup Canoo to purchase 10,000 vans by 2024.