ShipHero, a provider of warehouse management systems and fulfillment services, has spun off its fulfillment business by creating a new subsidiary named LVK. LVK will operate independently from ShipHero, utilizing its warehouse management system to offer a range of services, including direct-to-consumer and B2B fulfillment.

This strategic move is aimed at enhancing customer service and adapting to ongoing industry challenges, such as the current freight recession affecting various sectors including fulfillment and trucking.

The leadership of LVK includes Maggie Barnett, who acts in a dual role as COO of ShipHero and CEO of LVK. The company has started with seven fulfillment locations in the US and Canada, employing over 80 engineers. LVK's current customers include brands such as Momofuku, Loog Guitars, and OrthoFeet, and it has reported revenue of USD 70 million over the year.

Analyst QuickTake: ShipHero entered the third-party fulfillment business by opening its first fulfillment center in Las Vegas in 2019. Previously, the company had been offering its warehouse management software to clients since 2013.