Target to Acquire Last-Mile Delivery Technology From Deliv
Target announced last week that it's in the process of acquiring technology from Deliv, a startup that focuses on last-mile batched delivery. Target is acquiring the technology so it can explore new ways to deliver online orders more quickly while also lowering its shipping costs, according to a May 7 blog post on Target's corporate site. Target also said the last mile technology will continue "to put our stores at the center of our strategy to fulfill digital orders." As part of the deal, Target — which isn’t buying Deliv, just its technology — will hire Deliv CEO Daphne Carmeli and several Deliv employees. Deliv is in the process of shutting down its operations, The Wall Street Journal reported on Wednesday. As a result, partnerships Deliv had with companies such as Best Buy, Macy’s and Walgreens won’t continue.
Total Retail's Take: Good move, Target. The announcement comes as Target looks to bolster its same-day delivery options to compete with Amazon.com and Walmart. After all, speedy delivery is something consumers expect today. Amazon offers same-day delivery on up to 3 million items, as well as grocery orders from Whole Foods and Amazon Fresh. Walmart has also sped up service with next-day delivery in select markets. While Target and its competitors are looking to speed up deliveries during the coronavirus pandemic, Deliv’s technology won’t be rolled out immediately.This is Target's second acquisition targeted at fast delivery. In December 2017, Target acquired Shipt, an online same-day delivery platform. The deal gave Target access to Shipt’s proprietary tech platform and its network of more than 20,000 personal shoppers. Although Shipt is owned by Target, it still operates as an independent company. It also handles a different part of the logistics process than Deliv, which provides technology for grouping deliveries in the last mile of shipping.