<SUBMISSION>
<ACCESSION-NUMBER>0001082504-06-000061
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20060703
<FILING-DATE>20060713
<DATE-OF-FILING-DATE-CHANGE>20060713
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>VELOCITY EXPRESS CORP
<CIK>0001002902
<ASSIGNED-SIC>4513
<IRS-NUMBER>870355929
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0629
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>ONE MORNINGSIDE DRIVE NORTH
<STREET2>BUILDING B SUITE 300
<CITY>WESTPORT
<STATE>X1
<ZIP>06880
<PHONE>203-349-4160
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MORNINGSIDE DRIVE NORTH
<STREET2>BUILDING B SUITE 300
<CITY>WESTPORT
<STATE>X1
<ZIP>06880
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>UNITED SHIPPING & TECHNOLOGY INC
<DATE-CHANGED>19990512
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>U SHIP INC
<DATE-CHANGED>19960313
</FORMER-COMPANY>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Exeter Capital Partners IV, L.P.
<CIK>0001288589
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>000-28452
<FILM-NUMBER>06960831
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>10 EAST 53RD STREET, 32ND FL.
<CITY>NEW YORK
<STATE>NY
<ZIP>10022
<PHONE>(212) 872-1172
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10 EAST 53RD STREET, 32ND FL.
<CITY>NEW YORK
<STATE>NY
<ZIP>10022
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-07-03</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001002902</issuerCik>
        <issuerName>VELOCITY EXPRESS CORP</issuerName>
        <issuerTradingSymbol>VEXP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001288589</rptOwnerCik>
            <rptOwnerName>Exeter Capital Partners IV, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10 EAST 53RD STREET, 32ND FL.</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2465418</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note 1</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Units</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.45</value>
                <footnoteId id="F4"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2010-07-03</value>
                <footnoteId id="F3"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1105725</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Exeter Capital Partners IV, L.P. directly owns the shares.  Exeter IV Advisors, L.P. is the general partner of Exeter Capital Partners IV, L.P.  Exeter IV Advisors, Inc. is the general partner of Exeter IV Advisors, L.P. Keith R. Fox is the 100% shareholder of Exeter IV Advisors, Inc.  Exeter IV Advisors, L.P., Exeter IV Advisors, Inc. and Keith R. Fox indirectly own the shares.</footnote>
        <footnote id="F2">The Units are composed of (i) a 12% Senior Secured Note of the Issuer due 2010 in the aggregate principal amount of $3,205,000, together with (ii) a Warrant to purchase 1,105,725 shares of Common Stock of the Issuer.  For more details, please see the Reporting Person's Schedule 13D, filed with respect to the Issuer with the Commission as of the date hereof.</footnote>
        <footnote id="F3">The Warrant may be exercised at the option of the holder commencing on the approval by the stockholders of the Issuer of the issuance of the Warrant in accordance with the rules of the NASDAQ Stock Market, and ending at 5:00 P.M. Eastern Time on July 3, 2010.   Also, the Issuer shall not effect the exercise of the Warrant to the extent that, after giving effect to such exercise, the holder of the Warrant would beneficially own in excess of 4.99% of the shares of the Issuer's Common Stock.  For more details, please see the Reporting Person's Schedule 13D, filed with respect to the Issuer with the Commission as of the date hereof.</footnote>
        <footnote id="F4">The initial exercise price of the Warrant is $1.45 per share, subject to adjustment from time to time as provided for therein.  For more details, please see the Reporting Person's Schedule 13D, filed with respect to the Issuer with the Commission as of the date hereof.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Exeter Capital Partners IV, L.P. by /s/ Keith R. Fox</signatureName>
        <signatureDate>2006-07-13</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Exeter Capital IV Advisors, L.P. by /s/ Keith R. Fox</signatureName>
        <signatureDate>2006-07-13</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Exeter IV Advisors, Inc. by /s/ Keith R. Fox</signatureName>
        <signatureDate>2006-07-13</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Keith R. Fox</signatureName>
        <signatureDate>2006-07-13</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
