Route Startup Case Study – Protecting E-Commerce with a Seamless Post-Purchase Experience

Many small and medium-sized businesses (SMBs) struggle to get their products to customers outside their immediate locality. This is often due to challenges such as limited product visibility and inadequate logistics support.

On the consumer side, online shopping is undeniably convenient and time-saving — it eliminates the need to sift through countless products in crowded store aisles. However, this convenience can quickly turn into frustration when issues arise, such as delivery delays or, worse, lost, stolen, or damaged items. These problems impact not only the buyer but also the business, as customer trust is easily shaken, leading to reduced repeat purchases.

Meanwhile, the growing urgency of climate change is prompting both consumers and companies to become more conscious of the environmental impact of their actions.

In response, this company offers licensed, insurance-backed package protection to safeguard both merchants and customers. They also provide real-time visual tracking for consumers, green packaging, and carbon-neutral shipping that offsets carbon emissions, allowing businesses to contribute to sustainability efforts while strengthening customer confidence.

Together, these solutions create a more secure, sustainable, and seamless post-purchase experience for millions of online shoppers. They also give SMBs the visibility and logistical support they need to reach global customers.

The name of the company providing these solutions?

Route

Route is a venture-backed technology startup that specializes in e-commerce shipping protection, real-time package tracking, and AI-powered post-purchase engagement. The company aims to close the gap between large-scale e-commerce giants and smaller merchants by offering comprehensive shipping insurance, streamlined claims processing, and sustainable shipping options. Its unified platform empowers online merchants to provide a superior post-purchase experience while reducing operational challenges and environmental impact.

Status: Active

Founding Year: 2018

Headquarters: Lehi, Utah, United States

Industry: E-commerce Post-purchase and Logistics

Business Model

Type: B2B2C, Two-sided, Product & Service

• Clients: E-commerce merchants of all sizes seeking to enhance post-purchase customer experience, reduce shipping-related issues, and drive customer loyalty. Online shoppers who value convenient order tracking, shipping protection, and a seamless post-purchase experience.
• Suppliers: Shipping carriers (USPS, UPS, FedEx, DHL, and over 2,000 others), e-commerce platforms (Shopify, BigCommerce, Magento, WooCommerce, Salesforce Commerce Cloud), and technology partners (Klaviyo, Zendesk, Status, Recharge, Patch)

It’s Like: Insurance but for e-commerce shipping

Route provides a safety net for online businesses and their customers by mitigating the risks and uncertainties inherent in shipping. Similar to how traditional insurance safeguards against financial losses from unforeseen events, Route protects against the financial and logistical disruptions caused by lost, damaged, or stolen packages.

Key Differences:

• Focus: While traditional insurance covers a broad spectrum of risks, Route specializes in e-commerce shipping, addressing a specific pain point within the online retail ecosystem.
• Integration: Route seamlessly integrates with e-commerce platforms and shipping carriers, providing real-time tracking and automated claims processing. This contrasts with traditional insurance models, which often involve manual paperwork and lengthy claim procedures.
• Proactive Approach: Route’s platform aims to prevent shipping issues through proactive tracking and communication, while traditional insurance typically reacts to events after they occur.
• Value-Added Services: Beyond insurance, Route offers value-added services, such as product recommendations and carbon-neutral shipping, which enhance the overall post-purchase experience and drive customer engagement.

Shipping Challenges Addressed

• Shipping Risks for Merchants: Online businesses face inherent risks associated with shipping, including lost, damaged, or stolen packages, leading to financial losses, customer service strain, and potential damage to brand reputation.
• Poor Post-Purchase Experience: Lack of transparency and control over the shipping process can lead to a negative post-purchase experience for customers, resulting in frustration, increased inquiries, and reduced brand loyalty.
• Environmental Impact of Shipping: The growing volume of e-commerce shipments contributes to carbon emissions and environmental concerns, creating a need for sustainable shipping solutions that align with consumer values.
• Difficulty in Scaling Operations: Smaller e-commerce businesses often lack the resources and infrastructure to efficiently manage shipping, track packages, and handle customer service inquiries related to deliveries, hindering their ability to scale.

Route’s Solutions

• Shipping Protection: Route provides licensed insurance that covers packages against loss, damage, or theft, offering financial protection for both merchants and shoppers.
• Seamless Tracking: The platform offers real-time package tracking through a user-friendly app, web portal, and notifications, enhancing transparency and reducing customer anxiety.
• Efficient Issue Resolution: Route streamlines the claims process, enabling quick and easy resolution for lost or damaged packages, minimizing disruptions for both merchants and customers.
• Personalized Engagement: AI-powered product recommendations at various touchpoints during the tracking process help merchants drive repeat purchases and increase customer lifetime value.
• Sustainable Shipping: Route offers carbon-neutral shipping options, allowing businesses to offset the environmental impact of their shipments and appeal to eco-conscious consumers.

Founding Story

When and How Founded: Route was founded in 2018 by Evan Walker and Mike Moreno, officially launching in January 2019.

Problem Experienced: Co-founder Evan Walker, a seasoned e-commerce entrepreneur, faced difficulties shipping an antique steamer trunk internationally. This experience exposed the lack of reliable shipping protection and tracking solutions for smaller online merchants, especially for international shipments.

Founders and Experience:

• Evan Walker: Serial entrepreneur with over 20 years in e-commerce, starting his first online business at 14 and selling his first company (Netsoft) by 19.
• Mike Moreno: Background in strategic sourcing, operations, and business development from previous roles at doTERRA, Blue H20 Business Consultants, and others.

Why They Started: Walker recognized the disadvantage smaller businesses faced compared to giants like Amazon in shipping and tracking. He aimed to empower these merchants with tools to protect shipments and enhance the post-purchase experience.

Early Team: Included Evan Walker (Co-founder/CEO), Mike Moreno (Co-founder), Ryan Debenham (CTO), Arteen Arabshahi (SVP Strategy), and Clare Peterson (Enterprise Customer Success Manager). The team quickly grew to 120 employees within its first year.

Solution: Route developed a platform offering package tracking, shipping protection, and post-purchase engagement tools, focusing on addressing the needs of both e-commerce merchants and shoppers.

Challenges: Route’s early hurdles included solving lost packages, delivery disruptions, integrating with ecommerce partners, ensuring transparency, and building trust through seamless post-purchase protection.

First Results: Within the first three months of operation, Route acquired over 600 customers. Within its first year, it onboarded over 2,000 merchants and achieved a $14.4 million annual run-rate, surpassing Slack’s early growth record.

Continued Growth: Route continued expanding its product offerings, including a consumer-facing mobile app, AI-powered product recommendations, carbon-neutral shipping options, and the “Discover” feature for brand exploration within the app.

Innovation/Technology for Success: Route leverages a modern web-based technology stack, including MongoDB, React, Node.js, and AI-powered engines, to deliver its services. Its platform integrates seamlessly with major e-commerce platforms, shipping carriers, and other key services, ensuring a comprehensive and user-friendly experience.

Key Growth Milestones

• 2018: Route is founded.
• 2019:
  • January 2019: Official launch of Route.
  • End of 2019: Onboarded over 2,000 merchants, reached a $14.4 million annual run-rate.
• 2020: Revenue reaches $34 million.
• End of 2021: Revenue doubles to $80 million.
• January 2022: Achieves “unicorn” status with a $1.25 billion valuation after Series B funding.
• 2023: Surpassed $100 million in revenue.
• June 2024: Raises $40 million in Series C funding, reaching a $1.4 billion valuation. It surpassed $15 billion in protected merchandise.

Market & Competition

Target Market

Primary Target Market: E-commerce merchants of all sizes, ranging from small startups to large enterprises.

• Route partners with over 13,000 leading brands.
• The platform offers tiered pricing plans to cater to different business needs.
• Industries served include apparel (e.g., Cuts Clothing, LoveShackFancy), beauty and cosmetics, electronics, and home goods (e.g., Solo Stove).

Secondary Target Market: Online shoppers who purchase from these merchants and utilize the Route app to track and protect their shipments.

• These consumers value convenience, transparency in shipping, and the security of insurance against delivery issues.
• Route has over 3 million active app users.

Market Size and Growth:

• The e-commerce post-purchase software market is projected to grow at a CAGR of 8.7% between 2025 and 2033, reaching $3.2 billion by 2033.
• The shipment tracking software market is estimated to grow at a CAGR of 8.4% from 2024 to 2030, reaching $16.05 billion by 2030.
• The North American e-commerce market continues to thrive due to its mature online retail ecosystem and high customer expectations around delivery and support.

Potential New Markets:

• Expanding to other international markets outside North America.
• Exploring opportunities to apply its platform-based approach to other sectors beyond e-commerce.

Growth Trends in Potential Markets:

• Global e-commerce continues to expand, presenting opportunities in international markets.
• The e-commerce industry is experiencing steady growth, driven by ease of access, improved infrastructure, personalized experiences, and global scalability.

Competitor Landscape

Route operates in a competitive landscape with various players in the e-commerce post-purchase and logistics technology sectors.

Direct Competitors (End-to-End Post-Purchase Platforms):

• AfterShip: Shipment tracking, notifications, and returns management.
• Wonderment: E-commerce order tracking and post-purchase communication.
• Shipped AI: Customer service automation for e-commerce with delivery assurance.
• Narvar: Post-purchase customer engagement, order tracking, and returns.
• Malomo & Tracktor: Enhancing post-purchase experience and building customer loyalty.
• Recustomer: Post-purchase experience platform.
• PAQATO: After-sales e-commerce solutions with personalized shipping notifications.

Direct Competitors (Shipping Insurance):

• Shipsurance: Discounted parcel insurance.
• Anansi: Shipping insurance solutions.
• ARTA: Shipping and insurance technology for high-value items.
• Extend: Product protection platform.

Indirect Competitors (Route Planning & Delivery Management):

• Routific, Circuit, Onfleet, OptimoRoute, Route4Me, and Upper.

Marketing & Sales

Main Positioning Values: Post-purchase assurance

Website & Socials

• Route’s official website receives around 1.77 million monthly visits, with direct traffic accounting for the majority of the traffic share.
• Most visitors are based in the United States, followed by Canada and the UK. Reddit and LinkedIn primarily drive social media traffic.

Media Coverage

• PR Newswire: Featured Route’s mobile app launch. 
• TechCrunch: Reported on its $12M Seed Round and innovative package tracking solution.
• Comparably: Route has won several awards on Comparably, including Best Companies for Diversity (2021), Best Company for Women (2022), and Best Leadership Teams (2023), among many others.
• Forbes: Featured Route among its 2021 list of 25 venture-backed startups most likely to become unicorns.
• TechBuzz: Covered Route’s $40M Series C Funding round led by Hanaco VC.

Marketing Strategies

Target Audience: Route primarily targets e-commerce merchants of all sizes, ranging from small businesses to large enterprises. They offer tiered pricing plans (Basic, Pro, Custom) to cater to different business needs and volumes.

Customer Acquisition:

• Direct Sales: Route likely employs a direct sales team to reach out to potential merchants, particularly for their higher-tiered plans.
• Partnerships: They have established integrations with major e-commerce platforms like Shopify, BigCommerce, Magento, and WooCommerce, allowing for easy adoption by merchants already using these platforms.
• Content Marketing: Route utilizes content marketing, including case studies and testimonials from prominent brands like the Utah Jazz, Hess Toy Truck, and Wellbel, to showcase the platform’s benefits and attract potential customers.
• Website and Online Presence: Its website serves as a central hub for information, featuring customer testimonials, key metrics, and details about its services.

Supplier Acquisition: Route partners with a vast network of shipping carriers, including USPS, UPS, FedEx, DHL, and over 2,000 others, to ensure comprehensive tracking capabilities. They also partner with Technology providers and Agency experts.

Demographic Detail: An analysis of Route’s website traffic reveals that the majority of its audience falls within the 25-54 age range, with a relatively even distribution across these age groups.

Marketing Methods:

• Digital Marketing: Route likely utilizes digital marketing strategies such as search engine optimization (SEO), paid advertising, and social media marketing to drive traffic to their website and generate leads.
• Public Relations: They have been featured in various media outlets and publications, indicating a public relations strategy to increase brand awareness and credibility.

Product & Innovation

Unified Post-Purchase Platform

Route differentiates itself by offering a single, integrated platform that addresses multiple aspects of the post-purchase experience, including tracking, shipping protection, customer engagement, and sustainability.

Visual Tracking Experience

The platform goes beyond basic tracking numbers, providing an immersive and user-friendly interface with maps and visual updates on package locations.

One-Click Claims Resolution

Route simplifies the often-cumbersome claims process, allowing for quick and easy resolution of shipping issues with minimal effort from merchants or customers.

AI-Powered Recommendations

The integration of AI-driven product recommendations within the tracking experience is a unique feature that enables merchants to capitalize on post-purchase engagement and drive additional sales.

Discover Feature

The introduction of the Discover feature within the Route app transforms it from a tracking tool into a platform for brand and product discovery, creating a closed-loop shopping experience.

Financials & Metrics

Revenue Sources

Software as a Service (SaaS) Subscriptions: Route offers tiered subscription plans (Basic, Pro, Custom) to e-commerce merchants, providing varying levels of access to its platform features.

Transaction Fees: Route charges transaction fees to merchants for each insured shipment processed through its platform.

Metrics

Annual Recurring Revenue (ARR):

• $34 million in 2020.
• $80 million in 2021.
• Over $100 million in 2023.

Funding and Investments:

• Total Funding: Approximately $253.53 million
  • Pre-seed Round (February 2019): $1.53 million.
  • Seed Round (November 2019): $12 million.
  • Series B (January 2022): $200 million at a valuation of $1.25 billion.
  • Series C (June 2024): $40 million at a valuation of $1.4 billion.

Employee Count: Route’s employees have grown steadily through the years

• 2019: From 5 to 100 employees by the end of the year.
• 2024: 300 employees
• 2025: 201-500 employees

Client Count: Over 15,000 brands and 3 million active app users.

Structure & Culture

Organizational Structure

Route follows a hierarchical structure with a defined executive leadership team. Key Executives include:

• Co-Founder/Executive Chairman: Evan Walker
• Co-founder: Mike Moreno
• Chief Executive Officer (CEO): Eric Kobe
• Board Member: Michael Yamartino 
• Senior Director of Engineering: Augusto Pedroza
• Chief Compliance Officer (CCO): Corrine Carr
• Chief Product Officer (CPO): Andrew Schmid
• Chief Revenue Officer (CRO): Cameron Hale

Culture 

• Customer Focus: Route is deeply committed to addressing core pain points in the post-purchase journey, ensuring a seamless and satisfying customer experience.
• Energetic and Mission-Driven: The company fosters a culture where employees are passionate about reinventing e-commerce. Drive, determination, and alignment with Route’s mission are actively encouraged and celebrated.
• Innovation: Continuous investment in new features, integrations, and technology ensures Route remains ahead of industry trends and delivers exceptional value to merchants and shoppers.
• Growth and Opportunity: Route emphasizes personal and professional development, offering employees meaningful opportunities to learn, grow, and advance their careers.
• Collaboration: Strong partnerships with e-commerce platforms, shipping carriers, and other key services reflect a teamwork-first mindset. Internally, employees prioritize collective success, celebrate wins, and value honesty, authenticity, and joy in their work.
• Work-Life Integration and Flexibility: Route supports employees’ well-being through flexible time off, meaningful perks, and family-friendly benefits, recognizing the importance of life beyond work.

Values

The Route PACT values define their core principles; each letter stands for a value:

• Passion: Love for the work, energy, and commitment.
• Authenticity: Being real, honest, and human in interactions.
• Celebration: Recognizing success, maintaining joy, and positivity.
• Team over Ego: Prioritizing collaboration, shared success, and humility.

Impact & Success

Customer Feedback

Positive: Users praise Route’s convenience, unified tracking, ease of filing claims, and streamlined issue resolution. Shoppers appreciate the centralized platform for managing orders, while merchants value reduced customer service inquiries and more efficient insurance claim handling. This has led to a glowing customer satisfaction score of 97%, compared to the e-commerce industry benchmark of 80%.

The brand has a 4.7 star rating on TrustPilot. Francesca Kolbjornsen commends them, saying, “They are the best most trustworthy company, best customer service I’ve ever experienced with an insurance company. In less the 10 minutes my issue was resolved and my item on the way. 5 stars highly recommended.”

Negative: Recurring complaints involve delays or denials in claim processing, difficulties contacting customer support, unexpected charges, and issues with auto-added shipping protection. Reviews on platforms like Shopify’s app store show moderate ratings, indicating areas for improvement in meeting customer expectations.

A reviewer on Shopify, Living Towers Florida Keys, complained that, “We never had a claim denied during our time with Route, which was reassuring. Claims were processed quickly and customers received either a refund or replacement, though a handful of times customers were told only a refund was possible. While this worked fine for us, it created confusion because customers expected a choice between replacement or refund.

At the start, we also dealt with a frustrating issue where bots were placing fake orders that only included the Route protection product. This led to bogus email addresses being added to our email program and accounts being created in Shopify for months before we even went live. Eventually, Route put a fix in place to prevent checkout when the protection product was the only item in the cart, which solved the problem.

One concern I had before implementing Route was whether customers might file claims for seedlings damaged after delivery (e.g., from weather rather than transit). I believe this did occur occasionally, though claims were still approved. The reality is that we ship live plants, and shipping delays can cause damage. I think Route underestimated the unique challenges of working with perishable products before agreeing to partner with us.

Ultimately, our biggest disappointment was how the partnership ended. We woke up to an email that Route was offboarding us immediately due to profitability concerns. While they honored coverage for existing customers, there was no notice or transition period. This left us unable to update our website or notify customers before Route was removed as an option. After building policies and customer communications around Route, being cut off with no warning was extremely disruptive and damaging to customer trust.

If Route had offered a notice period and worked more collaboratively, we’d have nothing but good things to say. Unfortunately, the way the relationship ended left us frustrated and disappointed.”

Success Stories

Brand Endorsements: Prominent brands like Fly By Jing, Logan Hollowell, and Daily Drills endorse Route, highlighting its positive impact on customer experience and streamlined operations.

These endorsements emphasize benefits such as reduced customer service inquiries, increased shipping confidence, and an overall enhanced post-purchase journey. Route leverages these success stories to demonstrate its value and effectiveness in addressing e-commerce logistics challenges and fostering stronger brand-customer relationships.

Growth & Future

Challenges and Risks

• Inconsistent Customer Feedback: Addressing negative reviews regarding customer support and claim processing is crucial for maintaining a positive brand reputation.
• Competitive Landscape: Requires continuous innovation and differentiation to stay ahead of established players and emerging startups.
• Data Privacy and Security: Maintaining user trust and ensuring robust data protection is paramount, as the platform handles sensitive information.
• International Expansion Challenges: Adapting the platform and services to different market regulations and cultural nuances will be essential for global growth.

Future Plans

• Product Innovation: Enhancements in personalization, automation, and features that build brand loyalty.
• Geographic Expansion: Extending reach into international markets.

Key Takeaways for Entrepreneurs

• Solve a Real Pain Point: Route’s success highlights the power of addressing a genuine problem. Identify a significant pain point within a specific niche, like Route did with e-commerce shipping, and build a solution that directly tackles it.
• Think Beyond the Obvious: Don’t be afraid to challenge conventional approaches. Route could have simply offered another insurance product, but they differentiated themselves by integrating with existing e-commerce workflows and providing a proactive, technology-driven solution.
• Embrace the Power of Integration: Seamless integration with existing platforms can be a game-changer. Route’s partnerships with major e-commerce platforms like Shopify and BigCommerce significantly expanded their reach and simplified adoption for merchants.
• Turn a Problem into an Opportunity: Route cleverly turned the challenge of package tracking into opportunities for customer engagement and additional revenue streams through personalized product recommendations and the Discover feature.
• Value-Added Services are Key: Don’t just offer a single solution. Look for ways to provide value-added services that enhance your core offering. Route’s carbon-neutral shipping option, for instance, caters to the growing demand for sustainable practices.
• Don’t Underestimate the Power of Fintech: As the analysis highlights, integrating financial services, like Route’s shipping insurance, can significantly boost a startup’s value proposition and attract investor interest.