Globally, shopping habits have changed quickly in the last decade, and the majority of consumers now shop online.
The use of e-commerce has generated a significant demand for dedicated delivery services and results in increasingly difficult last-mile logistics.
According to experts, customers are more likely to buy a product when they see free and fast delivery promises. Around 50% of consumers will shop elsewhere if delivery times are too slow.
Consequently, retailers and merchants that don’t offer next-day delivery are at the risk of falling behind and losing customers.
Deliverr, a San-Francisco-based company, aims to change it.
The company is on a mission to enable any merchant, from the smallest startup entrepreneur to the largest omnichannel eCommerce retailer, to offer affordable and reliable 2-day, same-day, and Next-day e-commerce fulfillment.
Recently, the company secured $250M funding in Series E round, at a valuation of $2B, led by new investor Tiger Global. Existing investors, including 8VC, Activant, GLP, Brookfield Technology Partners, and Coatue, participated in the round.
The valuation is doubled now than its previous valuation when the company raised $170M seven months back, led by Coatue.
“The effective way to address supply chain bottleneck is to move inventory near to the end customer. Deliverr is working to solve this problem through stronger inventory placement while leveraging cutting-edge ML and optimisation technology to build a more intelligent fulfillment network,” says Harish Abbott, Deliverr co-founder, and CEO.
This latest funding will be used to accelerate commercial operations and expand its next-day fulfillment service to e-commerce merchants of all sizes across the country.
Harish adds, “With this capital, Deliverr will focus on scaling next-day fulfillment for e-commerce merchants & expand our world-class team.”
What Deliverr does?
Founded by Harish Abbott and Michael Krakaris, Deliverr is a startup company that provides shipping services for e-commerce businesses like Shopify, Walmart, Amazon, Target, eBay, and more.
The company helps the online marketplace to meet shipping standards, avoiding late shipment penalties for orders. Merchants on Deliverr grew 90% YoY compared to e-commerce growth rates at a fraction of that rate, claims the press release.
How does it do?
The company is using predictive analytics to anticipate demand for products based on demographics, geography, and other variables. The US company then uses that analysis to preposition items close to demand.
The company’s forward deploy network includes more than 80 warehouses, sort centers, and cross-docks.
By stocking items nearby, the company decreases the number of miles a product travels and facilitates Next-Day e-commerce fulfillment at affordable costs.
In just over three years of operations, the Deliverr network is on track to power more than a $2.5B GMV run rate by the end of 2021.
Today, half of the US population lives within 100 miles of a Deliverr network.
Based out of New York, Tiger Global Management is an investment firm that deploys capital globally in both public and private markets. The company seeks to earn superior risk-adjusted returns for its investors over the long term. The company’s focus is primarily on the global Internet, technology, telecom, media consumer, and industrial sectors.
“Deliverr is well-positioned to lead the e-commerce fulfillment space as several market forces converge,” says John Curtius, Partner at Tiger Global.
“While the global supply chain remains challenging because of the crippling impact of the COVID pandemic, online sales volumes and consumer demand for next-day delivery are projected to set new records. No other company, at the cutting-edge of fulfillment infrastructure and technology, will be able to solve for logistics chain disruptions, offer merchants next-day delivery, and save merchant money — all at the same time,” he added.