Deliv expansion to nearly double its same-day delivery footprint

California-based delivery start-up Deliv announced it would expand from 19 to 33 major markets for its same-day delivery service, nearly doubling its reach across 23 states and in more than 1,400 cities. The expansion of same-day delivery services is necessary as retailers move to compete with Amazon’s Prime Now service, said Deliv CEO and founder Daphne Carmeli.

“Same day delivery is quickly becoming table stakes across every retail segment,” Carmeli added. “With Deliv, retailers can offer their customers that same exceptional level customer experience without the need to invest in their own asset-based delivery fleet.”

Deliv’s business model involves partnerships with existing retailers including Best Buy, Office Depot and PetSmart, among others. The expansion of Deliv’s services includes adding new zip codes to its delivery area and bringing new drivers on-board through its online crowdsourcing of drivers as independent contractors. The brick-and-mortar stores within the Deliv network serve as fulfillment centers for online orders, with customers having the option of selecting preferred one- to three-hour delivery windows through the retailer’s site or mobile app.

Deliv has attracted significant recent investment as interest in the same-day delivery model increases, with logistics-giant UPS leading the latest funding round of US$28 million through the UPS Strategic Enterprise Fund in February 2016. At the time, chief commercial officer for UPS Alan Gershenhorn noted that Deliv was unique among same-day delivery providers for its partnerships with large brick-and-mortar retailers. “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,” Gershenhorn said.

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