

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13G

                                (Amendment No. 1)


                   Under the Securities Exchange Act of 1934*



                          Velocity Express Corporation
                          ----------------------------
                                (Name of Issuer)


                    Common Stock, par value $0.004 per share
                    ----------------------------------------
                         (Title of Class of Securities)


                                    92257T707
                                    ---------
                                 (CUSIP Number)


                                 January 1, 2009
                                 ---------------
             (Date of Event Which Requires Filing of this Statement)


           Check the appropriate box to designate the rule pursuant to
                         which this Schedule is filed:

                                [ ] Rule 13d-1(b)
                                [X] Rule 13d-1(c)
                                [ ] Rule 13d-1(d)


  *The remainder of this cover page shall be filled out for a reporting person's
  initial filing on this form with respect to the subject class of securities,
  and for any subsequent amendment containing information which would alter the
  disclosures provided in a prior cover page.

  The information required on the remainder of this cover page shall not be
  deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
  Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
  the Act but shall be subject to all other provisions of the Act (however, see
  the Notes).





<PAGE>




----------------------------                           -------------------------
CUSIP No.  92257T707                   13G             Page 2 of 12 Pages
----------------------------                           -------------------------

---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Third Point LLC
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]
                                                                     (b) [X]
---------- ---------------------------------------------------------------------
3          SEC USE ONLY
---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
-------------------- ------ ----------------------------------------------------
                     5      SOLE VOTING POWER

                            0
                     ------ ----------------------------------------------------
     NUMBER OF       6      SHARED VOTING POWER
      SHARES
   BENEFICIALLY             453,288
     OWNED BY
       EACH          ------ ----------------------------------------------------
     REPORTING       7      SOLE DISPOSITIVE POWER
      PERSON
       WITH                 0
                     ------ ----------------------------------------------------
                     8      SHARED DISPOSITIVE POWER

                            453,288
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           453,288
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

           N/A
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           11.7%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON

           OO
---------- ---------------------------------------------------------------------


<PAGE>






----------------------------                           -------------------------
CUSIP No.  92257T707                   13G             Page 3 of 12 Pages
----------------------------                           -------------------------

---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Daniel S. Loeb
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]
                                                                     (b) [X]
---------- ---------------------------------------------------------------------
3          SEC USE ONLY
---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION

           United States
-------------------- ------ ----------------------------------------------------
                     5      SOLE VOTING POWER

                            0
                     ------ ----------------------------------------------------
     NUMBER OF       6      SHARED VOTING POWER
      SHARES
   BENEFICIALLY             453,288
     OWNED BY
       EACH          ------ ----------------------------------------------------
     REPORTING       7      SOLE DISPOSITIVE POWER
      PERSON
       WITH                 0
                     ------ ----------------------------------------------------
                     8      SHARED DISPOSITIVE POWER

                            453,288
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           453,288
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

           N/A
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           11.7%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON

           IN
---------- ---------------------------------------------------------------------


<PAGE>






----------------------------                           -------------------------
CUSIP No.  92257T707                   13G             Page 4 of 12 Pages
----------------------------                           -------------------------

---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Third Point Offshore Fund, Ltd.
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]
                                                                     (b) [X]
---------- ---------------------------------------------------------------------
3          SEC USE ONLY
---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION

           Cayman Islands
-------------------- ------ ----------------------------------------------------
                     5      SOLE VOTING POWER

                            0
                     ------ ----------------------------------------------------
     NUMBER OF       6      SHARED VOTING POWER
      SHARES
   BENEFICIALLY             0
     OWNED BY
       EACH          ------ ----------------------------------------------------
     REPORTING       7      SOLE DISPOSITIVE POWER
      PERSON
       WITH                 0
                     ------ ----------------------------------------------------
                     8      SHARED DISPOSITIVE POWER

                            0
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           0
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

           N/A
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           0.0%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON

           OO
---------- ---------------------------------------------------------------------


<PAGE>







----------------------------                           -------------------------
CUSIP No.  92257T707                   13G             Page 5 of 12 Pages
----------------------------                           -------------------------

---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Third Point Offshore Master Fund, L.P.
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]
                                                                     (b) [X]
---------- ---------------------------------------------------------------------
3          SEC USE ONLY
---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION

           Cayman Islands
-------------------- ------ ----------------------------------------------------
                     5      SOLE VOTING POWER

                            0
                     ------ ----------------------------------------------------
     NUMBER OF       6      SHARED VOTING POWER
      SHARES
   BENEFICIALLY             322,592
     OWNED BY
       EACH          ------ ----------------------------------------------------
     REPORTING       7      SOLE DISPOSITIVE POWER
      PERSON
       WITH                 0
                     ------ ----------------------------------------------------
                     8      SHARED DISPOSITIVE POWER

                            322,592
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           322,592
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

           N/A
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           8.6%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON

           OO
---------- ---------------------------------------------------------------------


<PAGE>






----------------------------                           -------------------------
CUSIP No.  92257T707                   13G             Page 6 of 12 Pages
----------------------------                           -------------------------

---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Third Point Advisors II L.L.C.
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]
                                                                     (b) [X]
---------- ---------------------------------------------------------------------
3          SEC USE ONLY
---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
-------------------- ------ ----------------------------------------------------
                     5      SOLE VOTING POWER

                            0
                     ------ ----------------------------------------------------
     NUMBER OF       6      SHARED VOTING POWER
      SHARES
   BENEFICIALLY             322,592
     OWNED BY
       EACH          ------ ----------------------------------------------------
     REPORTING       7      SOLE DISPOSITIVE POWER
      PERSON
       WITH                 0
                     ------ ----------------------------------------------------
                     8      SHARED DISPOSITIVE POWER

                            322,592
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           322,592
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

           N/A
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           8.6%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON

           OO
---------- ---------------------------------------------------------------------


<PAGE>





     This Amendment No. 1 to Schedule 13G (this "Amendment No. 1") is being
filed with respect to the Common Stock of Velocity Express Corporation, a
corporation formed under the laws of the State of Delaware (the "Company"), to
amend the Schedule 13G filed on October 28, 2008 (the "Schedule 13G").
Capitalized terms used herein and not otherwise defined have the meanings
ascribed thereto in the Schedule 13G. As of January 1, 2009, Third Point
Offshore Fund Ltd. (the "Offshore Fund"), one of the joint filers of the
Schedule 13G, has transferred all of its interest in the Common Stock to Third
Point Offshore Master Fund, L.P. (the "Offshore Master Fund"). This Amendment
No. 1 is being filed to disclose that the Offshore Fund no longer beneficially
owns any Common Stock and to include the Offshore Master Fund and Third Point
Advisors II L.L.C. ("Advisors II") as joint filers of the Schedule 13G. The
Offshore Master Fund and Advisors II may be deemed to have beneficial ownership
of more than 5% of the Common Stock by virtue of the Offshore Master Fund's
acquisition of Common Stock from the Offshore Fund. Advisors II is the general
partner of the Offshore Master Fund and as such may be deemed to have beneficial
ownership over the Common Stock owned by the Offshore Master Fund. Capitalized
terms used herein and not otherwise defined have the meanings ascribed in the
Schedule 13G.

Item 2(a):     Name of Person Filing:
---------      ---------------------

     Item 2(a) is hereby amended and restated as follows:

     This Schedule 13G is filed by:

     (i)  Third Point LLC, a Delaware limited liability company (the "Management
          Company"), which serves as investment manager or adviser to a variety
          of funds and managed accounts (such funds and accounts, collectively,
          the "Funds"), with respect to the shares of Common Stock (as defined
          in Item 2(d)) issuable upon the conversion of the shares of the Series
          Q Convertible Preferred Stock of the Company (the "Preferred Stock")
          directly owned by the Funds;

     (ii) Mr. Daniel S. Loeb ("Mr. Loeb"), who is the Chief Executive Officer of
          the Management Company and controls its business activities, with
          respect to the shares of Common Stock issuable upon the conversion of
          the shares of Preferred Stock indirectly beneficially owned by Mr.
          Loeb by virtue of such position;

    (iii) Third Point Offshore Fund, Ltd., a Cayman Islands limited liability
          exempted company (the "Offshore Fund"), which has transferred all of
          the shares of Preferred Stock (convertible into Common Stock) directly
          held by it to the Offshore Master Fund;

     (iv) Third Point Offshore Master Fund, L.P., a Cayman Islands exempted
          limited partnership (the "Offshore Master Fund"), which invests and
          trades in securities, with respect to shares of Common Stock issuable
          upon the conversion of the shares of Preferred Stock directly held by
          it; and

     (v)  Third Point Advisors II L.L.C., a Delaware limited liability company
          ("Advisors II"), which serves as the general partner of the Offshore
          Master Fund.

     The Management Company, Mr. Loeb, the Offshore Fund, the Offshore Master
Fund, and Advisors II are hereinafter sometimes collectively referred to as the
"Reporting Persons." Any disclosures herein with respect to persons other than
the Reporting Persons are made on information and belief after making inquiry to
the appropriate party.


<PAGE>

Item 2(b):    Address of Principal Business Office or, if None, Residence:
---------     -----------------------------------------------------------

     Item 2(b) is hereby amended and restated as follows:

     The address of the principal business office of the Management Company, Mr.
Loeb and Advisors II is 390 Park Avenue, New York, New York 10022. The address
of the principal business office of the Offshore Fund and the Offshore Master
Fund is c/o Walkers SPV Limited, Walker House, 87 Mary Street, George Town,
Grand Cayman KY1-9002, Cayman Islands, British West Indies.

Item 2(c):      Citizenship:
---------       -----------

     Item 2(c) is hereby amended and restated as follows:

     The Management Company and Advisors II are organized as limited liability
companies under the laws of the State of Delaware. Mr. Loeb is a United States
citizen. The Offshore Fund is organized as a limited liability exempted company
under the laws of the Cayman Islands. The Offshore Master Fund is organized as
an exempted limited partnership under the laws of the Cayman Islands.

Item 4:        Ownership:
------         ---------

     Item 4 is hereby amended and restated as follows:

  A. Third Point LLC
     ---------------
     (a)  Amount beneficially owned: 453,288
     (b) Percent of class: 11.7%. This percentage is based upon a total of
3,862,776 shares of Common Stock, calculated as the sum of (i) 3,409,488 shares
of Common Stock issued and outstanding as of November 7, 2008, as reported in
the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and
Exchange Commission on November 12, 2008 for the quarterly period ended
September 30, 2008 (the "Reported Share Number") and (ii) the 453,288 shares of
Common Stock issuable to the Funds upon conversion of the Preferred Stock.
     (c)  Number of shares as to which such person has:
               (i) Sole power to vote or direct the vote: -0-
               (ii) Shared power to vote or direct the vote: 453,288
               (iii) Sole power to dispose or direct the disposition: -0-
               (iv) Shared power to dispose or direct the disposition: 453,288

  B. Daniel S. Loeb
     --------------
     (a)  Amount beneficially owned: 453,288
     (b) Percent of class: 11.7%. This percentage is based upon a total of
3,862,776 shares of Common Stock, calculated as the sum of (i) the Reported
Share Number and (ii) the 453,288 shares of Common Stock issuable to the Funds
upon conversion of the Preferred Stock.
     (c)  Number of shares as to which such person has:
               (i) Sole power to vote or direct the vote: -0-
               (ii) Shared power to vote or direct the vote: 453,288
               (iii) Sole power to dispose or direct the disposition: -0-
               (iv) Shared power to dispose or direct the disposition: 453,288




<PAGE>

  C. Third Point Offshore Fund, Ltd.
     -------------------------------
     (a)  Amount beneficially owned: -0-
     (b) Percent of class: 0.0%.
     (c)  Number of shares as to which such person has:
               (i) Sole power to vote or direct the vote: -0-
               (ii) Shared power to vote or direct the vote: -0-
               (iii) Sole power to dispose or direct the disposition: -0-
               (iv) Shared power to dispose or direct the disposition: -0-

  D. Third Point Offshore Master Fund, L.P.
     --------------------------------------
     (a)  Amount beneficially owned: 322,592
     (b) Percent of class: 8.6%. This percentage is based upon a total of
3,732,080 shares of Common Stock, calculated as the sum of (i) the Reported
Share Number and (ii) the 322,592 shares of Common Stock issuable to the
Offshore Master Fund upon conversion of the Preferred Stock.
     (c)  Number of shares as to which such person has:
               (i) Sole power to vote or direct the vote: -0-
               (ii) Shared power to vote or direct the vote: 322,592
               (iii) Sole power to dispose or direct the disposition: -0-
               (iv) Shared power to dispose or direct the disposition: 322,592

  E. Third Point Advisors II L.L.C.
     --------------------------------------
     (a)  Amount beneficially owned: 322,592
     (b) Percent of class: 8.6%. This percentage is based upon a total of
3,732,080 shares of Common Stock, calculated as the sum of (i) the Reported
Share Number and (ii) the 322,592 shares of Common Stock issuable to the
Offshore Master Fund upon conversion of the Preferred Stock.
     (c)  Number of shares as to which such person has:
               (i) Sole power to vote or direct the vote: -0-
               (ii) Shared power to vote or direct the vote: 322,592
               (iii) Sole power to dispose or direct the disposition: -0-
               (iv) Shared power to dispose or direct the disposition: 322,592

Item 10:  Certification:
-------   -------------

Each of the Reporting Persons hereby makes the following certification:

     By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.


                         [Signatures on following page]



<PAGE>






<PAGE>

                                    SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.


Dated:  January 5, 2009


                              THIRD POINT LLC

                              By: Daniel S. Loeb, Chief Executive Officer


                              By:     /s/ William Song
                                      ------------------------------------------
                              Name:   William Song
                              Title:  Attorney-in-Fact



                              THIRD POINT OFFSHORE FUND, LTD.

                              By: Daniel S. Loeb, Director


                              By:     /s/ William Song
                                      ------------------------------------------
                              Name:   William Song
                              Title:  Attorney-in-Fact



                              THIRD POINT OFFSHORE MASTER FUND, L.P.

                              By:  Third Point Advisors II L.L.C., its general
                                   partner
                              By:  Daniel S. Loeb, Managing Director


                              By:     /s/ William Song
                                      ------------------------------------------
                              Name:   William Song
                              Title:  Attorney-in-Fact


               [SIGNATURE PAGE TO AMENDMENT NO. 1 TO SCHEDULE 13G
                  WITH RESPECT TO VELOCITY EXPRESS CORPORATION]



<PAGE>

                              THIRD POINT ADVISORS II L.L.C.

                              By:  Daniel S. Loeb, Managing Director



                              By:     /s/ William Song
                                      ------------------------------------------
                              Name:   William Song
                              Title:  Attorney-in-Fact



                              DANIEL S. LOEB



                              By:     /s/ William Song
                                      ------------------------------------------
                              Name:   William Song
                              Title:  Attorney-in-Fact


               [SIGNATURE PAGE TO AMENDMENT NO. 1 TO SCHEDULE 13G
                  WITH RESPECT TO VELOCITY EXPRESS CORPORATION]

<PAGE>









                                  EXHIBIT INDEX


Exhibit 99.1:  Joint Filing  Agreement,  dated January 5, 2009, by and among
               Third Point LLC,  Third Point  Offshore  Fund, Ltd., Daniel S.
               Loeb, Third Point Offshore Master Fund, L.P. and Third Point
               Advisors II L.L.C.

Exhibit 99.2:  Power of Attorney granted by Daniel S. Loeb in favor of James P.
               Gallagher,  William Song, Joshua L. Targoff and Bruce Wilson,
               dated January 5, 2009.




