May 10, 2017

Deliv adds grocery option to its same-day service

"Deliv Fresh" will compete with Instacart and for a slice of the $675 billion retail grocery sector.

By DC Velocity Staff

Crowd-sourced, last-mile parcel company Deliv has launched a service called Deliv Fresh to serve the grocery e-commerce sector with same-day delivery, the company said Wednesday.

Backed by a $28 million investment from UPS Inc. and partners, Deliv has been growing fast in recent months, rolling out its services to additional cities and adding a reverse logistics feature in 2016. Menlo Park, Calif.- based Deliv is now targeting the $675 billion retail grocery business, which is forecast to handle as much as 20 percent of total sales through online channels by 2025.

Faced with that steep growth, grocers are deciding between two business models, Deliv says. They can join marketplaces like Instacart and Amazon Prime Now, which take ownership of the customer transaction, or they can offer same-day delivery from their own branded sites, powered by last-mile companies such as Deliv.

By launching its new service, Deliv hopes to convince more grocers to choose the second option. E-commerce companies that use Deliv Fresh can get food to their customers faster, allowing items to maintain ultimate freshness and require less bulky and unnecessary packaging. In addition, Deliv's service allows omnichannel retailers to leverage their stores as local distribution centers and delivery hubs, Deliv says.

"We've spent the last five years building the network for last-mile logistics across the country," Deliv CEO and co-founder Daphne Carmeli said in a release. "Industries like grocery that didn't have cost-effective delivery options are now able to tap into our network and offer a fresh customer experience."

Deliv Fresh provides same-day service to grocers, meal services, and other perishable e-commerce providers such as FoodKick by FreshDirect, GetFedNYC, GreenBlender, Plated, BloomThat, The Cheese Store of Silverlake, Plum Market, and Eataly Chicago.

The company currently operates its core service in 18 markets and more than 100 cities, providing same-day, last mile delivery services for retailers and businesses including Macy's, Best Buy, Kohl's, and PetSmart.

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