Parcel delivery startup Gofo is rapidly expanding its U.S. network, doubling the processing capacity of its Dallas operation as it looks to build national scale and compete with established carriers.
The company has moved its Dallas operation into a new facility and installed a large automated sorting system, bringing additional capacity online ahead of the peak holiday shipping period. The move is designed to help Gofo handle higher volumes without relying on temporary facilities during the busiest weeks of the year.
Gofo expects weekly parcel volumes to rise by around 50% above normal levels between Thanksgiving and Christmas.
The company officially opened the new Dallas facility last week. The site adds approximately 200,000 square feet of space and features a large double-deck cross-belt sorter. According to a company announcement issued Tuesday, the facility has 42 dock doors and can process as many as 45,000 parcels per hour. Daily processing capacity has consequently doubled to 800,000 parcels.
Dallas is now the third anchor point in Gofo’s U.S. network, following the opening of super hubs in Newark, New Jersey, and Los Angeles last year.
Founded in 2023, Gofo is part of a growing group of independent parcel carriers seeking to disrupt a market long dominated by FedEx, UPS and the U.S. Postal Service. A significant portion of its e-commerce activity comes from retailers selling apparel, health and beauty products, vitamin supplements, small consumer packaged goods and electronics.
Gofo’s network now covers more than 12,000 ZIP codes, representing roughly 75% of the U.S. population. The company operates approximately 300 hubs and stations, compared with 100 facilities and coverage of 8,000 ZIP codes last fall.
That rapid expansion also highlights one of the biggest challenges facing alternative parcel carriers: achieving enough shipment density to generate the economies of scale required for profitability.
Industry experts say that challenge becomes particularly difficult once a carrier moves beyond 10,000 ZIP codes.
“It’s the smaller mid markets that they have trouble getting to because they don’t have the volume to run full tractor trailers or even midsize box trucks,” one industry consultant said, speaking broadly about newer courier companies. “Everybody can perform quite well where the volume and densities are at in these major markets.”
Gofo says it now operates more than 400 linehaul routes, a dramatic increase from just 30 routes one year ago.
Expanding the network while improving service
Competitive pricing has helped Gofo attract customers, but the company’s latest expansion is intended to achieve more than simply increasing its geographic reach. The strategy is focused on maintaining service levels while reducing transit times.
Gofo’s rates are between 15% and 50% below those of many competitors, depending on a customer’s overall spending, Chief Sales Officer Vincent Damato said during an episode of Bloomberg’s “Talking Transports” podcast in February.
In March, Gofo said the greater scale and density of its network, combined with process and technology improvements, would allow it to tighten its nationwide delivery standard to within five days of tendering. The previous delivery window ranged from one to seven days, with the new target expected to be in place for this year’s holiday shipping season.
The company has recently opened five additional primary and secondary hubs in Arizona, Utah, Indiana, Ohio and Pennsylvania, further strengthening its operational footprint.
Capacity has also been expanded at Gofo’s coastal hubs ahead of peak season.
The Newark facility was expanded this year to 800,000 square feet, twice the size of its previous location. Its sorting capacity has increased from 40,000 parcels per hour to 100,000.
In Los Angeles, Gofo’s super hub now covers 750,000 square feet and can sort 90,000 parcels per hour. Both facilities have daily processing capacity exceeding 1 million parcels.
Gofo has also expanded its presence in Europe this year.
The company has not disclosed how much it has spent on leasing and outfitting its new facilities. The precise source of its capital remains unclear, although Zongteng Group, a Chinese cross-border e-commerce logistics provider, is known to be among its backers.
Dallas becomes the central U.S. hub
Gofo began operating in Dallas in October 2024 and opened its Houston hub in September 2025. With the latest facility and automation investment, the company now considers Dallas its strategic hub for the central United States.
The facility is positioned to connect the East and West coasts while increasing handling capacity throughout the central and southern United States.
Gofo says the Dallas hub allows it to operate shorter linehaul lanes into key markets such as Texas, Oklahoma and Louisiana. This should make milk runs more efficient while helping maintain more consistent transit times.
For longer-haul movements, the hub’s central geographic position allows coast-to-coast shipments to be divided into shorter legs. The approach gives Gofo a way to add volume without extending overall transit times.
Earlier this year, Gofo said improved linehaul discipline had enabled 80% of its shipping lanes to consistently meet scheduled arrival benchmarks.
The company has also introduced unified transit-time targets, with dispatch schedules built around expected arrival times rather than fixed departure slots. Shipments that meet minimum load thresholds can be released earlier instead of waiting for predetermined departures.
Staggered dispatching, more balanced capacity utilization and team drivers are also being used to create a more consistent flow of middle-mile traffic into hubs and stations.
“This facility is the centerpiece of our Texas growth,” Ron Jansen, GOFO’s chief commercial officer for North America, said in the announcement. “With this hub in place, we now reach over 90% of the population in Texas, making Texas the state with the highest coverage across our entire network.”
Automation and data move to the center of operations
The Dallas facility’s automated sorting system combines six-sided barcode scanning with dynamic weighing and dimensioning. The technology creates a comprehensive data record for each parcel, covering everything from small boxes and cartons to poly bags, foam containers and padded mailers across a broad range of sizes and weights.
For Gofo, the investment is about more than increasing sorting speed. Automation reduces the number of manual touches required for each parcel, cuts dwell time inside the facility and creates additional capacity for future growth.
Behind the physical network, Gofo has also invested in an integrated intelligence system designed to connect its order management and transportation management systems.
The platform provides tracking and monitoring capabilities from Gofo’s headquarters through its hubs, stations and delivery service partners. Recipients receive delivery milestones and real-time updates.
Known as Atlas, the operating platform provides managers with decision-making tools, dispatch orchestration and routing optimization, according to Gofo.
At individual hubs, Atlas uses live scanning and network data to continuously update parcel locations and routing information. Predictive analytics are also used to identify potential capacity problems before they become operational issues, allowing teams to respond in advance.
The larger Dallas hub also gives retailers and logistics providers an opportunity to position inventory closer to major consumer markets and reduce middle-mile transportation requirements. At the same time, Gofo says the facility provides delivery contractors and drivers with a more consistent base of business as the network continues to grow.
Gofo’s customers include TikTok Shop, Shopify, AliExpress, e-commerce logistics provider ShipSquared and fulfillment company Our Serviceworks.
“Automation gives us throughput; Atlas is what turns that throughput into reliability our shippers can plan around,” said Vincent D’Amato, GOFO’s chief sales officer for North America. “Dallas is a milestone, not a finish line. We will keep adding capacity where our shippers’ volume is growing.”
More automation planned before the holidays
Gofo’s broader automation program is also moving forward.
The company plans to upgrade automation and management systems at 13 primary and secondary hubs across the country. According to its latest announcement, the work is on schedule to be completed before the peak season.
A larger-scale sorter is currently being installed at Gofo’s Houston hub and is expected to enter service by November. Once operational, Houston will become the company’s second automated hub in Texas, providing additional handling capacity across the central region.
Gofo expects its network to handle more than 6 million parcels on the single busiest day of this year’s peak season. That would be twice the volume recorded on the busiest day last year.
The expansion also comes as major competitors prepare for higher holiday costs. While carriers including FedEx and the U.S. Postal Service have announced additional holiday fees, Gofo continues to maintain a policy of no peak-season surcharges.
