What Is a Hybrid Shipping Model?

February 20, 2025

A hybrid shipping model combines multiple carriers to reduce costs and optimize delivery speed. Instead of one carrier handling the entire route, packages are transferred between different carriers for efficiency.

Examples of Hybrid Shipping Services:

  • UPS SurePost – UPS handles the long-haul, USPS does final delivery.
  • FedEx SmartPost – FedEx linehaul, USPS delivers to the recipient.
  • Xparcel by FirstMile – Dynamically selects the best mix of national & regional carriers.

Why Hybrid Shipping Works for eCommerce:

✔️ Reduces Costs – USPS delivers to all ZIP codes at lower rates.

✔️ More Carrier Options – No single-carrier dependency.

✔️ Flexible Transit Times – Balance between speed & savings.

How FirstMile’s Xparcel Uses Hybrid Shipping:

  • Automatically selects the fastest, cheapest carrier mix for each package.
  • Reduces fuel surcharges & delivery fees by leveraging regional carriers.
  • Improves final-mile delivery performance through gig-economy networks.

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