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How Does Veho Work? Tracing Veho's Journey Till Today

A Veho driver is supposed to delivery packages on a fixed route they can pick up before the delivery day. Let's know how Veho was founded and its journey.
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Veho is changing the way last-mile delivery is done. In the process, they’re paying out $22 per hour to drivers. Although founded in 2016 by entrepreneurs Itamar Zur, Lukas Keindl and Matt Graham, Veho started really hitting its stride in 2021.

Are they the future of Side Hustles and the answer to the Last-Mile problem for Ecommerce retailers like Amazon?

Or could they be just another flash in the pan?

Keep reading to learn why the History of Veho is so important to understanding the future of the industry. 

Compared to similar delivery jobs in the existing market, Veho offers good rates. Plus, Veho is considered to be safe, as it involves less interaction than food delivery and rideshare services. 

Here, we share Veho’s journey and its business model so that you can get a complete overview of how the service works.

If you're curious about whether becoming a driver for Veho is right for you, be sure to read our Veho review

Tracing Veho’s Journey


Veho was founded in 2016 by Fred Cook, Itamar Zur, Lukas Keindl, and Matt Graham. Veho is an end-to-end delivery service that prioritizes the client experience. 

Powered by patented technology, a network of skilled and qualified flexible drivers, Veho helps a variety of businesses to satisfy their customers who want to receive and send packages like never before. 

With an exceptional shipping experience, Veho drivers help customers save on shipping costs, obtain full visibility into all of their shipments, and increase customer loyalty through reliable service. 

Veho has been billed as 'next generation' in shipping due to its service model. It started with an Uber business model, adding package delivery. Veho hasturned shipping from a costly service to one that is affordable. For Veho, exceptional reliability and customer service has become a brand differentiator, as it's shipping service is as much a part of customer experience as is the product itself. 

Retailers enjoy it because it allows them to control the entire brand experience. For this and other reasons, Veho has far higher repeat usage than traditional logistics networks. 

The company has won the confidence of not only retail logistics buyers but also CEOs, CFOs, and CROs who want to demonstrate their commitment to their customers and increase revenue and loyalty.

It Started as a School Project…

Veho began as a school project when co-founder Itamar Zur was attending Harvard as a Business Student. Zur was always having problems receiving packages and parcels and knew that something had to be done to solve this issue. 

He set out to repair parcel delivery with his classmates. The result was Veho, a delivery service fully integrated with the industry's most powerful technology platform, to give customers and retailers an impressive and efficient delivery experience. 

This new project was so successful that Veho won The Harvard Business School New Venture Competition in 2017. Top industry figures such as the former CEO of FedEx Supply Chain and officials from UPS and Amazon now back the project.

                                                     Veho Driver Earnings Compared                                          
State City Rate Per Hour
Arizona Phoenix $22.36
California Los Angeles $22.36
California ($21.67) Arvada $20.43
Aurora $20.96
Boulder $22.36
Broomfield $20.54
Colorado Springs $21.22
Denver $21.19
Englewood $21.79
Federal Heights $21.17
Fort Collings $21.22
Lakewood $21.22

In almost 30 years, there had been no substantial improvements in the parcel delivery industry. The majority of delivery firms continue to rely on outdated and inefficient technology, which results in greater delivery costs, higher exception rates, and more dissatisfied consumers. 

Customers have no visibility or control over their delivery experience as big delivery trucks clog our streets. With the rise of e-commerce, businesses required a more flexible delivery partner with a cutting-edge customer experience at a competitive price.

Veho brought in an easy solution for the retailers and customers to enjoy a seamless delivery experience. Plus, it provided new jobs to those looking to make some extra bucks by making deliveries.

Why Did Veho Become Successful? 


To date, brands who use Veho recorded a 19.2% increase in consumer LTV while managing to save over 21% in shipping costs. Brands report nearly perfect delivery scores (99.5+%) and customer satisfaction (4.95 out of 5) after switching to Veho. 

Customers are continuously asking for geographic expansion, so they can leverage Veho in more places for more of their deliveries. 

Veho’s technology makes it all possible, starting with the deep data integration they have with their B2B customers. Further, the Veho platform provides superior and continuously optimized delivery routing, variable route pricing, end-to-end, real-time package tracking, and live customer communication through the Veho app.

Using the gig economy and the principles that have made companies like Uber and Doordash so successful, Veho is building a real-time marketplace for drivers and routes, which provides the flexibility and reliability both brands and drivers need. 

Veho drivers love it, resulting in low churn and a major leg up in a supply-constrained talent market. Drivers prefer Veho to other gig-type jobs because they can choose their routes, and are able to see what their earnings will be the day before. 

Routes are better planned and can avoid peak traffic and congestion times. Detailed customer instructions and real-time communication make drop-offs straightforward, efficient, and less error prone.

                                                     Veho Driver Earnings Compared                                          
State City Rate Per Hour
Lakewood ($21.22) Littletown $21.22
Lovaland $18.67
Westminster $22/36
Georgia Atlanta $19.26
Illinois ($21.41) Chicago $20.93
Elk Groove Village $21.22
Elmhurst $21.22
Vernon Hills $20.00
Wheeling $20.00
Maryland ($21.60) Baltimore $21.79
Upper Marlboro $21.22

Construct is an investor in Veho that provided the following insight on its early growth;

The numbers Construct Investment team saw in Veho’s records were close to the ones they had observed in the early days of Uber.” 

How Does Veho Work?

Source: ConstructCap

A Veho driver first needs to pass a test, which includes a quick registration process, answering a few questions, and passing the MVR, BC. Once done, drivers can start working for Veho and can bring their car to work. 

  • Routes are available to all drivers on a first-come, first-served basis from 6pm to 7pm the day before the said delivery is expected to be done.
  • As a Veho driver, you will find Mondays are the busiest days of the week. 
  • Tuesday through Friday are typically slower. 
  • You'll know the payout amount, projected distance, and terminating neighborhood location before you accept a route.
  • Veho drivers work as independent contractors, must own a big sedan or larger, and have to be over 25. 

Veho drivers earn up to $22 per hour delivering packages at fixed routes. As the earnings are shared beforehand, there aren't any surprises regarding payouts. 

Before beginning a delivery, Veho drivers are supposed to check the app for any particular instructions. Afterwards, they must take a photo of each delivered package at the doorstep. 

In the event of a problem, both shippers and receivers can use Veho's real-time conversations with customer service specialists. 

A lot of new solutions we come across today are inspired by the founder’s inspiration to solve a problem. While, for Uber, it was the founder's difficulty getting a taxi one night in Paris, for Veho, it was the founders frustration with package delivery services.

A Project Resulting from Experience and A-B Testing

Graham and Zur came up with the notion of having the items delivered to a certain location. They started experimenting with a nearby 7-11 convenience store—where customers would walk-in to get their packages. 

They placed advertising in the newspaper to see if anyone would join them. The founders spent a substantial amount of time going door-to-door, passing out flyers, and making phone calls.

At last, Graham and Zur were able to find a restaurant owner who was interested in doing a trial with the fledgling business. She agreed to have the parcels delivered to her restaurant, where the recipients could be confident that they would not be stolen.

She hoped that in exchange, these customers would purchase food from her restaurant while picking up the package. Graham and Zur realized that no one wanted to join up after traveling from apartment complex to apartment complex near the restaurant. And this created another issue. 

People simply wanted them delivered to their homes. These failures taught the founders a lot about the industry, logistics, and customers, and they went back to Boston inspired to hone their concept.

                                                     Veho Driver Earnings Compared                                          
State City Rate Per Hour
Nevada Las Vegas $21.22
North Carolina ($21.22) Charlotte $21.22
Pensylvannia ($21.79) King of Prussia $21.22
Philadelphia $21.98
Texas ($21.54) Arlington $21.22
Austin $21.22
Coppell $21.98
Dallas $21.38
Grand Prairie $21.22
Houston $21.79
Lewisville $21.79
San Antonio $21.22
The Colony $21.22
Virginia ($21.22) Centreville $21.22
Lorton $21.22
Wisconsin Milwaukee $21.22

Graham and Zur were both present during the industry's development, witnessing how delivery service models evolved.

Following that, they used the Harvard Business School alumni network to reach out to over 90 leaders for advice on their proposal and perspective. The framework of the delivery area, Graham and Zur concluded, is a big market, but it lacked order.

So, Veho was created to bring orders into the industry and to make sure that packages were delivered, as per the requirements, reliably. 

How much a Veho Driver is Paid


A Veho driver can earn between $15 to $22 per hour based on the city they are working in. Dallas has the highest hourly rate ($22.36), whereas Atlanta has the lowest ($19.37). 

Mondays are typically the busiest days, so drivers can expect to make somewhere between $150 to $200 per day, depending on the hours worked. 

With Veho, it isn’t like you have to pick up and drop off one package at a time. It usually involves delivering a series of packages, where the routes are pre-synchronized to maximize timeliness and efficiency. 

On average, routes are around three hours for $60 in earnings. 

Given that you can work for 9 hours a day with two half-hour breaks, you are looking at making $160 per day working as a driver for Veho. When not working with Veho, you are also permitted to deliver for other services available in your city. 

Moving Forward…

Veho continues to expand to new cities in the US. It may not be available nationwide yet, but it has the potential to become the Uber of deliveries. 

Every product or service that aims to change the industry’s bottom line takes time to mature, and the same is true of Veho. As the company is building, learning, and growing, the people working with the company can also expect to get better returns and benefits, including Veho drivers. 

Andrew Wise. Side Hustling since 2009
Andrew Wise, Side Hustler Since 2009
Founder, Wurk.cc
I have spent my entire adult life maximizing my money. At age 6, I was selling my lunch, at age 16, I was a Power Seller on eBay, and at age 26 I was helping Postmates manage their $10M annual Adwords budget. Today, I'm helping gig workers maximize their money on Wurk.
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