Goal to acquire same-day delivery technology from Deliv – TechCrunch


Target, which already owns on-demand delivery service Shipt, is in the process of acquiring technology assets from same-day delivery service Deliv. The retailer qualifies the transaction as more of an R&D type acquisition and not an acquisition that will have an immediate impact on consumers. Terms of the deal were not disclosed, but we understand the deal’s price tag is a far cry from Shipt’s $ 550 million as it is not an outright acquisition of Shipt’s business. Deliv.

Deliv had raised more than $ 80 million in venture capital, according to Crunchbase. The acquisition price would be irrelevant to Target, which is not issuing a press release or 8-K file of note.

NBC News first broke news of Target’s plans to acquire technology from Deliv.

“Deliv is in the process of closing a deal to sell technology assets to Target and the CEO of Deliv and a subset of the team will move to Target,” a spokesperson for Deliv told TechCrunch. “The target is not involved in the liquidation. We are working with our business partners to move delivery services to other vendors over the next 90 days. “

The deal is expected to be finalized in about a month. As part of the acquisition, Target is also making offers to certain Deliv staff, including founder and CEO Daphne Carmeli, who is expected to accept.

Deliv, meanwhile, tells TechCrunch that employees are given two months’ pay and options to maintain their health care. Operations will end over a 90-day period, meaning some team members will remain employed for the next two months while they search for their next job. Drivers will also continue deliveries during this time, but will have time to seize other opportunities, Deliv said.

Target already had some exposure to Deliv’s technology, having worked with the delivery service provider in small tests in 2019 and early 2020. The retailer believes there is long-term potential in this. is about Deliv’s technology, which intelligently bundles open orders. in the same area – something its earlier acquisitions of Shipt and Grand Junction in 2017 didn’t offer.

However, Target does not plan to integrate Deliv technology immediately into any of its operations. Instead, it will research and test how the technology could help its supply chain at scale. Target isn’t talking about what kind of orders or tests it can run after the deal closes, but believes the technology could be used in a number of ways to make its deliveries more efficient.

News of the Target acquisition comes just a day after The Wall Street Journal announced that Deliv would cease on-demand delivery operations no later than August 4.

Founded in 2012, Deliv operated a same-day delivery service for products such as groceries and prescriptions in 35 markets. He had partnerships in place with companies like Best Buy, Walgreens, and Macy’s, but those won’t stay untouched.

Deliv previously had a partnership with Walmart, but that ended in February 2019. At the time, Deliv said the partnership with Walmart was not a large part of its operations.

The deal marks Target’s second acquisition in the delivery space. In December 2017, Target purchased same-day delivery service Shipt for $ 550 million. Since then, Target has launched a dedicated shopping site for the identical delivery service, powered by Shipt. But of late, Target has come under fire for its practices towards Shipt workers, especially during the COVID-19 pandemic. In early April, Shipt buyers quit work to demand an extended sick pay policy, risk premium and personal protective equipment.

Assuming Target is able to maximize Deliv’s potential, as expected, it could help Target better compete with Amazon and Walmart, both of which have invested in and acquired smart delivery logistics technology over the years. This area of ​​Target’s business may become increasingly important to its bottom line, as the long-term impact on consumer behavior caused by the coronavirus pandemic may shift more buying from brick and mortar to the market. online retail.

Update, 7/5/20, 5:30 p.m. ET: Target announced the news on their blog after it was posted, adding the following statement:

“Our revolutionary order fulfillment services, such as order pickup, transportation and shipping, have already made same-day delivery and pickup possible for millions of guests,” said Arthur Valdez, vice-president. Executive Chairman and Chief Supply Chain and Logistics Officer of Target, in the article. “This technology from Deliv is just one more example of how Target is investing in the future of local delivery.

Previous The charter company that operated a helicopter in the Kobe Bryant crash received federal funds for the coronavirus
Next Full Montana House approves state main budget after day-long debate

No Comment

Leave a reply

Your email address will not be published.