The companies announced Monday that Omnichannel fulfillment provider Stord has acquired an on-demand warehouse and fulfillment network Ware2Go from UPS.

The deal gives the Atlanta-based startup another 21 e-commerce warehouses with a total capacity of 2.5 million square feet of storage, allowing it to expand to new markets faster to meet the growing demand of e-commerce brands. Stord's fulfillment center is concentrated in 11 major metropolitan areas in the United States, many of which are controlled by third-party partners as well as the UK and Europe and Canada.

Founded in 2015, Stord is a one-stop shop for e-retailers that manages transactions for more than $6 billion of online checkout to last mile delivery and inventory management, and has a suite of warehouse management, order management, order management and parcel shipping software. Ware2Go's acquisition comes after the acquisition of Propack and Pitney Bowes' e-commerce department in 2024 and the previous fulfillment.

Last week, Stord announced that it had raised more than $200 million in Series E funds from several banks and venture capital, with the company estimated to be $1.5 billion.

“We are in a unique time in e-commerce and retail, as brands work to manage by changing global trade policies. Even with macro uncertainty, e-commerce end consumers still expect fast delivery, perfect order accuracy, simple returns and more,” said Sean Henry, CEO and co-founder of Stord. “This acquisition of Ware2Go is a strategic investment that expands our domestic footprint and capabilities in the U.S. while strengthening our partnership with UPS. This partnership will enable us to deploy our technology within the Ware2Go network, enhance our products for our mutual customers, and combine our scale to become one of the largest implementation networks in North America.”

UPS (NYSE:UPS) launched Ware2Go in mid-2018 as a platform that matches a variety of smaller B2B and B2C E-Merchants and has available warehouse space. The business aims to position inventory as close to the end users as possible so that they can ensure one to two-day delivery. Through its technology, Ware2Go determines warehouse capacity close to merchant end customers and veterinary warehouse operators. The network can be rapidly expanded to meet the expansion needs of merchants. Service products include direct to consumer shipping, seller fulfillment sold on Amazon Prime, and B2B goods that are in line with retail.

UPS is in major network mergers and cost reduction measures, and he said the sale of Ware2Go will allow the company to focus on its major Express package delivery and supply chain management businesses.