Western U.S. parcel carrier Deliver It has shut down and is preparing for Chapter 7 bankruptcy proceedings, marking another exit in a competitive U.S. delivery industry.
The company specialized in next-day shipping to consumers in the Western U.S., including California, Arizona and Nevada, per its website. As of March, Deliver It had over 700 employees and contractors involved in the delivery of roughly 40,000 packages daily for dozens of customers.
Deliver It's closure, confirmed by Chief Commercial Officer Kendra Jackson on LinkedIn, marks an abrupt end for the regional carrier, which has faced financial challenges this year.
In February, a group petitioned for an involuntary Chapter 7 bankruptcy of DI Overnite, LLC — which did business as Deliver It — in U.S. Bankruptcy Court for the Central District of California. The petitioners said Deliver It hadn't paid the nearly $1.2 million it owed them "despite repeated demands for payment."
Deliver It CFO Joseph Varraveto responded in a March 6 court filing, saying the petition was a surprise and "has caused and is continuing to cause irreparable harm to [Deliver It]’s business and operations." The petition resulted in its bank Pathward freezing a $20 million revolving line of credit, Varraveto said, adding that Deliver It would be forced "to immediately shutter operations" if the freeze remained in place.
In a separate filing the same day, Deliver It requested an interim order from the judge that would clear the way for Pathward to unfreeze the line of credit. The filing noted Deliver It owed the bank nearly $10.6 million plus interest, fees and additional costs as of Feb. 21. A final order approving that emergency motion was granted on April 21.
Deliver It called for the petition to be dismissed and denied several of the petitioners' claims in a March 19 filing, but the company's tune changed a few months later. Deliver It said on July 8 it would consent to Chapter 7 bankruptcy proceedings, resulting in a judge ordering the process to commence in a separate filing.
Deliver It's demise adds to the list of delivery providers that have shut their doors since 2024 after falling short in a competitive market, including Pitney Bowes' e-commerce logistics unit, Pandion and Maergo.
Consolidation in the parcel shipping space is expected to continue due to heightened rate discounts from major carriers, a drop in e-commerce volumes from China, slowing investment activity and other headwinds, Derek Lossing, founder of Cirrus Global Advisors and a former Amazon Logistics leader, said in a LinkedIn post last week.
"There is no need for the number of carriers that deliver today (or yesterday) in Southern California," Lossing said. "I know of 8 different companies that can do your parcel delivery, not including UPS, USPS, FedEx or Amazon Shipping. The market is too fragmented for all of them to be individually successful. We will continue to see exits or consolidation in the months to come."
