Target is planning to acquire technology from Deliv, a last mile delivery-focused startup. The retailer will also offer to recruit some members of the Deliv team, including CEO Daphne Carmeli, as the solution provider shuts down its own operations, according to The Wall Street Journal.
The Deliv wind-down is happening independently of the Target deal, according to a Deliv spokesperson. People familiar with the matter told The Wall Street Journal that the technology won’t be immediately deployed by Target, although the retailer will use the capabilities to enhance its research into making efficient urban deliveries.
“Our game-changing fulfillment services — like Order Pickup, Drive Up and Shipt — have already made same-day delivery and pickup possible for millions of guests,” said Arthur Valdez, EVP and Chief Supply Chain and Logistics Officer at Target in a statement. “This technology from Deliv is just one more example of how Target is investing for the future of local delivery.”
Target has been putting a heavy emphasis on ship-from-store capabilities: the retailer has reported that 80% of its order volume was handled by stores in previous quarters, and that its buy online, pick up in-store (BOPIS) volume grew 50% in 2019. Target has good reason to emphasize these offerings: completing orders through Drive Up and Order Pickup costs 90% less than traditional warehouse fulfillment.