Shyp
On-demand pickup and packaging for individual shipments is too expensive per unit to be viable.
2013 → 2018
$62M
Logistics
USA
IdeaProof AI Failure Score
Full Analysis
Shyp offered on-demand shipping: take a photo of what you want to ship, and a courier would pick it up, package it, and send it via the cheapest carrier. The company raised $62M and was praised as a logistics innovation. But sending a person to pick up, package, and ship individual items cost $15-20 per transaction—far more than customers would pay. The service attracted low-frequency users shipping occasional items, not the high-volume shippers needed for profitability. Shyp raised prices, customers left, and the company shut down. The lesson: convenience services must achieve sufficient volume density to make unit economics work.
Could This Failure Have Been Prevented?
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