Dive Brief:

• Last-mile delivery startup Shyp has quietly added a $5 handling fee to online returns, in addition to its regular $5 pickup plus postage fees.

• Shyp developed a dedicated application for returns last year in response to customer requests.

• Shyp hasn’t formally announced the change, but the new return fee is noted on its app and its website. Earlier this year Shyp said it would be making fee changes in a quest for profitability.

Dive Insight:

Same-day delivery startups need extra business in order to scale, but will it be enough to cross over from their venture-capitalized cushions to actual profits? The pressure to do so has increased in recent months as the appetite for investing in startups is appearing to wane.

Venture capital investment fell significantly in Q4 2015, dropping 30% to $27.2 billion, according to venture capital research firm CB Insights. And, Fortune notes, investors and employees alike are more likely these days to vet startups more stringently for signs of viability. 

There are other signs that Shyp is struggling with new realities: While it still operates in Chicago, New York, Los Angeles, and San Francisco, the company recently halted operations in Miami, TechCrunch reports.

Getting packages from point A to point B is a complicated business that may actually cost more than what retailers or consumers are charged. It's not clear whether Shyp or its delivery rivals will be able to reach the scale necessary to keep those prices low, or if such services would be very popular if prices rise. Time will tell if the extra $5 is enough to tamp down customers’ appetite for the convenience of Shyp’s returns services, considering that online returns are often free.