This past year, e-commerce sales saw an unprecedented growth of 44%. While giants such as Amazon and Walmart, with their vast scale and same-day shipping capabilities, dominated the market, Deliverr, a logistics and fulfillment company that expedites shipping without charging consumers more, managed to capture a piece of the pie.
Founded in 2014, Deliverr has raised $240 million to date, including a $100 million Series C in 2019, led by Coatue Management. With this latest round of funding, Deliverr is now valued at $1.2 billion.
What is Deliverr?
Deliverr is a logistics and fulfillment company that expedites shipping without charging consumers more. The company partners with thousands of retailers and brands, such as Macy’s, Target, and Best Buy, to provide two-day or next-day shipping at competitive rates.
How does Deliverr work?
Deliverr uses a network of warehouses and third-party logistics providers to store and ship products on behalf of its retailer and brand partners. When a customer orders a product from one of Deliverr’s partners, the company uses its algorithms to determine the most efficient way to get the product to the customer’s doorsteps. In some cases, this may mean that the product is shipped directly from the retailer’s or brand’s warehouse. In other cases, Deliverr will ship the product from one of its own warehouses.
Deliverr’s warehouse network is strategically located across the United States, in cities such as Los Angeles, Chicago, Dallas, and Atlanta. This allows the company to ship products to most of the country within two days.
What are Deliverr’s plans for the future?
Deliverr is on a mission to power the next wave of e-commerce growth. To do this, the company is focused on three things:
- Increasing the number of products available for two-day or next-day shipping
- Expanding its geographic reach
- Investing in technology to further optimize its warehousing and logistics network
With its latest round of funding, Deliverr plans to accelerate its plans in all three areas.
The opportunity in e-commerce
There is a huge opportunity in e-commerce right now. Online sales are growing at a breakneck pace, and e-commerce is quickly becoming the preferred shopping method for consumers.
By 2025, e-commerce is expected to make up 22% of all retail sales worldwide. That’s a staggering $4.8 trillion.
The growth of e-commerce has been driven by a number of factors, including the rise of mobile commerce, the increasing popularity of social commerce, and the growing number of Gen Z and millennial shoppers.
But the biggest driver of e-commerce growth has been the coronavirus pandemic.
The pandemic has caused a major shift in consumer behavior, with more people than ever shopping online for groceries, household goods, and other essentials. This shift is expected to be permanent, with even after the pandemic ends, many people continuing to shop online out of convenience and comfort.
As e-commerce grows, so does the opportunity for logistics and fulfillment companies like Deliverr.
The pandemic has highlighted the importance of fast, reliable shipping, and given a boost to companies like Deliverr that can provide it. In the age of social distancing, next-day and same-day shipping has become even more important, as people want to minimize their time spent in public places.
Deliverr is uniquely positioned to capitalize on this opportunity. The company has built a network of warehouses and logistics partners that allows it to offer fast, reliable shipping at a competitive price.
And with its latest round of funding, Deliverr is well-positioned to invest in the technology and expansion needed to further scale its business.
The future of Deliverr
Deliverr is on a mission to power the next wave of e-commerce growth. The company is focused on expanding its geographic reach, increasing the number of products available for two-day or next-day shipping, and investing in technology to further optimize its warehousing and logistics network.
With its latest round of funding, Deliverr is well-positioned to execute on its plans and capitalize on the growing opportunity in e-commerce.