AxleHire

Based in Emeryville, California, AxleHire is a last-mile logistics company that provides same-day and next-day delivery services for e-commerce and retail brands through a proprietary routing technology platform and a gig-worker fleet. The company, which merged with regional carrier Deliver-It in late 2023 and subsequently rebranded as Jitsu, operates an asset-light business model utilizing dynamic routing and sortation centers across more than twenty major metropolitan areas. Prior to the corporate merger, the enterprise generated approximately $8.8 million in annual revenue and maintained a dedicated workforce of 251 employees. The logistics provider has secured over $37 million in total venture funding, including a $20 million Series B round led by Eclipse Ventures. Its enterprise client portfolio features prominent consumer brands and retailers such as Walmart, HelloFresh, and Nespresso. AxleHire was founded in 2015 by Daniel Sokolovsky.

# High-Level Overview

AxleHire is an expedited urban last-mile delivery service that provides same-day and next-day delivery solutions for high-volume eCommerce shippers and brands[1][2]. The company solves a critical problem in modern logistics: enabling brands to offer fast, reliable delivery at competitive costs without relying on expensive national carriers. AxleHire serves major retailers and direct-to-consumer companies like HelloFresh and American Eagle by combining proprietary routing technology with a flexible gig driver fleet to create scalable delivery networks across major U.S. metropolitan areas[2].

The company operates in a $140 billion market forecasted to reach $200 billion within three years, currently covering 21 major metropolitan regions with access to over 115 million consumers[2]. AxleHire has demonstrated exceptional growth momentum, achieving 100% client retention, triple-digit net revenue retention, and a 99%+ on-time delivery rate that significantly outperforms legacy carriers[2].

# Origin Story

AxleHire was founded in 2015 by entrepreneur Ilya Sokolovsky, who identified converging trends that would reshape last-mile logistics: the explosive growth of same- and next-day delivery expectations, the relocation of fulfillment facilities into urban centers, and the rise of the gig economy[4]. The company emerged at a moment when traditional carriers were struggling to meet the speed and cost demands of rapidly growing eCommerce businesses.

Sokolovsky's background in logistics and his observation of market inefficiencies—particularly the difficulty of shipping partial loads or multi-destination shipments—informed AxleHire's core technology approach[4]. The company quickly gained traction by partnering with influential brands and demonstrating that a technology-driven, crowdsourced delivery model could outperform entrenched incumbents on both reliability and cost.

# Core Differentiators

• Proprietary routing technology: AxleHire's software aggregates packages into dense delivery routes and matches load sizes to right-sized vehicles, reducing CO2 emissions per package by 95% compared to traditional carriers[2][5]

• Gig-powered flexibility: The crowdsourced driver fleet enables the company to flex capacity dynamically during peak demand without the fixed costs of traditional carrier networks[1]

• Superior execution metrics: 99%+ on-time delivery rate and real-time customer support create a reliability advantage that reduces delivery-related refunds and improves customer lifetime value[1][2]

• Cost advantage: By reducing dependence on national carriers and their expensive surcharges, AxleHire stabilizes logistics costs for customers while maintaining faster delivery speeds[1]

• Sustainability focus: Partnerships with zero-emissions delivery providers like Tortoise (autonomous robots) and URB-E (e-bikes) position AxleHire as an environmentally conscious alternative to traditional logistics[5]

# Role in the Broader Tech Landscape

AxleHire operates at the intersection of three powerful trends reshaping logistics. First, consumer expectations for speed have fundamentally shifted—same-day and next-day delivery are no longer premium services but baseline expectations, forcing retailers to rethink their fulfillment strategies[2]. Second, urbanization of fulfillment has created opportunities for technology-driven, localized delivery networks that traditional long-haul carriers cannot efficiently serve[4]. Third, the gig economy has matured as a viable operational model, enabling companies to scale delivery capacity without massive capital expenditure.

AxleHire's success demonstrates that technology and network effects can disrupt entrenched logistics incumbents. By building software that coordinates diverse driver pools and optimizes routing at scale, the company has created a platform that benefits from network density—the more packages flowing through a metro area, the more efficient the system becomes. This positions AxleHire as a critical infrastructure layer for the eCommerce ecosystem, particularly for brands seeking alternatives to Amazon's logistics dominance.

The company's expansion into zero-emissions delivery also signals how sustainability is becoming a competitive differentiator in logistics, not merely a corporate responsibility initiative[5].

# Quick Take & Future Outlook

AxleHire is well-positioned to capture significant share in a rapidly consolidating last-mile delivery market. The company's 100% client retention and triple-digit net revenue retention suggest strong product-market fit and pricing power[2]. As eCommerce continues to mature and brands demand faster, cheaper, and more sustainable delivery options, AxleHire's technology-driven approach offers a compelling alternative to both legacy carriers and newer entrants.

The company's founder has already begun exploring adjacent opportunities—launching a separate venture focused on less-than-truckload (LTL) logistics, suggesting confidence in the core AxleHire model and appetite for expanding the platform's reach up the supply chain[4]. Watch for potential expansion into tier-two metros, deeper integration with fulfillment providers like ShipHero, and acceleration of zero-emissions delivery as key indicators of AxleHire's trajectory. The company's ability to maintain its cost and reliability advantages while scaling nationally will ultimately determine whether it becomes a category leader or a valuable acquisition target for larger logistics players.