Deliverr does not own a warehouse or delivery van, but the startup helps e-commerce companies, not called Amazon, achieve Amazon-like two-day shipping. The startup does it with smart algorithms, and today it announced a Series C investment of $ 40 million.
Activating capital led the round. Other investors in the company include the founder and CEO of 8VC, GLP and Flexport, Ryan Peterson. The company claims to have raised a total of $ 70 million.
"We enable a retailer to offer free delivery anywhere in the world where he sells, regardless of whether it's Walmart eBay or Amazon, as we integrate it into Prime or his own website," said Deliverr CEO and co-founder Michael Krakaris said TechCrunch. A program has also recently been added for retailers who want next-day delivery.
The question is how do they do this without having a single warehouse or delivery van, but Krakaris says he cut his teeth at Twilio, a company that supplied intelligence without being a freight forwarder. As he learned there, you can build a business if you have good data and a good algorithm.
They have also built relationships with a network of warehouses across the country and, as Krakaris emphasized, most warehouses have unused space. Based on their understanding of the markets, they move goods to different parts of the country, store them in available storage rooms and use the in-house picking systems to pick up the goods.
The most important thing is that they are integrated into the warehouse management system software, so that orders received via your system are integrated into the warehouse, picked, processed and loaded onto a truck. The system also helps to find the fastest and cheapest way to deliver the goods on time.
These are two algorithms, an incoming and an outgoing algorithm. “Incoming is when a dealer starts sending inventory to the Deliverr network. And so we do a couple of things. If it’s a repeat item, we already have a demand chart for that item so we’re just optimizing the existing need, ”he said. He says common sense is when you find that certain items are consistent all year round, but you don't want to wear warm jackets in Florida and California.
The other piece is outbound, the quickest and cheapest way to deliver this item. You have relationships with a variety of national and regional carriers. When an order is placed, check the inventory and location and determine the optimal selection based on the price and the ability to get there in the delivery window. Krakaris claims to have a success rate of over 95%, which is almost the top of the industry.
The company was founded in 2017. With just 60 employees, thousands of dealers are served with data. This is proof of the performance of data and good algorithms.