Target recently announced it would acquire last-mile delivery startup Deliv’s technology platform. We take a look at what this means for Target and for last-mile competition among consumables retailers at large.
On May 7, retailer Target announced it would buy last-mile delivery startup Deliv’s technology assets. Deliv offers a crowd-sourced delivery service, and in particular pools orders going to similar areas to cut costs. The company has established partnerships with retailers including Best Buy, Walgreens, and Macy’s.
The cost of the acquisition was not disclosed, and the deal is expected to close in about a month. Some Deliv employees, including CEO Daphne Carmeli, are expected to join Target as well.
Below, we take a look at the Deliv deal to understand why Target’s move matters.
3 big takeaways
The coronavirus pandemic has made efficient last-mile fulfillment more vital than ever
- Last-mile fulfillment capabilities have become a central focus during the Covid-19 crisis. As consumers stay away from stores — and retailers deal with the challenges of fulfilling more orders — on-demand delivery is becoming an increasingly essential part of a retailer’s skillset.