Menlo Park, Calif.-based crowdsourced parcel carrier Deliv raised $28 million in Series B funding from the UPS Strategic Enterprise Fund and existing investors, which it will use to support the company’s “dramatic” growth.
Same-day delivery startup Deliv has raised $28 million in Series B funding, a portion of which came from a new investor, parcel giant UPS, according to a statement from the company.
The investment technically comes from the UPS Strategic Enterprise Fund, in addition to existing investors Upfront Ventures, RPM Ventures, PivotNorth Capital, General Growth Properties, The Macerich Company, Simon Venture Group, Taubman Centers, Inc. and Westfield Corp. The strategic investment arm of UPS Inc. has invested in several startups recently, including e-commerce-as-a-service firm Ally Commerce Inc., and 3-D printing manufacturer CloudDDM LLC, which in June co-located its manufacturing facility adjacent to UPS’s Worldport in Louisville, Kentucky.
Self-described crowdsourced last-mile logistics company Deliv uses regular people to deliver packages on a flexible, “on-demand” schedule, similar to the now well-known “gig” taxi companies like Uber and Lyft. The company has contracts with for same-day delivery and returns for retailers like Walgreens, Best Buy, EXPRESS, Kohl’s, Macy’s, Bloomingdale’s, Pottery Barn, and Williams-Sonoma, as well as thousands of local merchants and e-commerce companies like Google Express, Farfetch, The Bouqs and Plated.
Deliv said it would use the Series B investment funds support the company’s “dramatic growth” as well as enhance its service offering by increasing the number of products available for shipment. The company in 2015 more than doubled the number of markets it serves to 17 and increased its delivery volumes by 1000 percent.
Part of that growth came from the November 2015 acquisition New York City same-day delivery specialist Zipments, its second such acquisition.
For UPS, the investment gives it access to and information on a market in which it does not currently compete.
“Deliv has gained a strong position in the same-day delivery market by offering a unique solution that serves some of the largest retailers in the U.S.,” UPS Chief Commercial Officer Alan Gershenhorn said of the investment. “Our Strategic Enterprise Fund continues to invest in companies that have innovative business models, and we look forward to gaining further insights into the market dynamics of same-day delivery.”
“We’ve had our eye on Deliv for quite a while,” Rimas Kapeskas, head of UPS’s Strategic Enterprise Fund, reportedly told the Wall Street Journal. Kapeskas admitted, however, UPS is most interested in the company’s proprietary software and is unsure of the actual market demand for such a service.
“I struggle to understand what it is that I need in less than a few hours,” he said.
UPS invests in same-day delivery startup
