In the meantime, people interested in the supply chain trend could consider investing in a publicly traded company focused on capitalizing on the same markets Flexport serves. Here are three options to consider.
1. Shopify
Shopify is a leading global commerce company that provides essential internet infrastructure to its customers. It used to operate a rival logistics platform, Shopify Logistics. However, it sold that business, including Deliverr, to Flexport in early 2023. In exchange, Shopify received a 13% equity stake in Flexport.
It also had an existing equity interest in the global logistics platform. It has continued to add to its investment in Flexport, pouring another $260 million into the company in early 2024 to own roughly 17% of the company. Shopify provides investors a backdoor to gain equity exposure to Flexport. It could eventually distribute its Flexport stock to shareholders after the company completes its IPO.
2. UPS
UPS (UPS +0.05%) is a leading global logistics company. It specializes in ground delivery and operates more than 135,000 vehicles. UPS also has a meaningful air fleet with about 500 aircraft, significantly larger than Flexport's fleet of three leased planes.
The other big difference between UPS and Flexport is that Flexport makes most of its revenue from ocean freight. It buys space on container ships in bulk and leases it to its customers, earning a margin on the spread between the shipping line's rates and what it charges customers.
3. FedEx
FedEx (FDX -0.08%) is very similar to UPS. The main difference is that FedEx specializes in global air express freight. It had more than double the number of aircraft compared to UPS, with almost 700 planes.
It also has a larger international presence, allowing it to charge lower rates than rivals that ship internationally. International air cargo is a focus for Flexport, which is working to improve the profitability of its planes.
Investors who want to buy one of these Flexport alternatives can purchase shares in any brokerage account. Here's a step-by-step guide on how to invest in stocks like Flexport.
