Will technology even the last-mile playing field with Amazon?
Deliverr, which last week raised another $40 million in funding, uses “machine learning and optimization technology” to bring two-day delivery to sellers on marketplaces such as eBay, Shopify and Walmart. The service is pitched as a way to compete with Amazon Prime delivery.
“While massive businesses like Amazon have the scale and expertise to make this a reality, the vast majority of online retailers simply can’t meet this expectation on their own. That’s where Deliverr comes in,” said Michael Krakaris, CEO, in a blog entry announcing the funding that brings the total capital raised by the San Francisco-based start-up to $70 million.
Deliverr leases warehouse space nationwide, then uses predictive algorithms to “intelligently” distribute sellers’ inventory to the warehouses so it will be within two days of potential buyers. The company recently added a program that supports next-day delivery.
With Deliverr’s help, products automatically become eligible for Prime-like programs like Walmart Two-Day Shipping and eBay Guaranteed Delivery that help items earn higher ratings from customers and become more visible on search pages.
With Deliverr, more than 95 percent of consumers shopping on online marketplaces will see item listings with fast shipping tags. If sellers opt to use their own warehouse, Deliverr estimates less than 30 percent of shoppers would see fast shipping tags.
As noted by VentureBeat, others offering online fulfillment solutions include Bringg and Roadie for last-mile delivery; Chaldal, Fabric and Attobotics for micro-fulfillment solutions; and Convoy, Transfix and Loadsmart for long-haul delivery planning. Many also pitch themselves as an answer to Amazon.
In a blog entry last week, Guy Bloch, Briggs’ CEO, projected same-day and next-day delivery will soon be within every brand’s reach.
“Market trends will eventually propel brands to aggregate billions of deliveries to be fulfilled by a network of technology and logistics providers and partners to deliver at scale, in essence, commoditizing the delivery experience,” he wrote. “And this is basic market equilibrium and I call it the Coalition Model — it’s all of us, brands, logistics companies, and technology vendors, coming together to create a real alternative to Amazon, creating a fair game again.”
- Deliverr Raises $40M in Series C Funding – Deliverr
- Accelerate your Walmart Sales – Deliverr
- Deliverr lands $40M Series C to bring two-day shipping to any merchant – TechCrunch
- The commoditization of same day and next day delivery – Bringg
- These Shipping Services Are Helping Small Businesses Compete with Amazon – Footwear News
- The Prime Effect: How Amazon’s Two-Day Shipping Is Disrupting Retail – The Wall Street Journal
DISCUSSION QUESTIONS: Do you see machine learning or other technologies helping competitors, large and small, catch up to Amazon in logistics and last-mile delivery? What do you think of Deliverr’s solution?