Palo Alto, California-based Deliv has acquired a smaller scale rival as a means of meeting new customer standards and demands for same-day delivery services.
WeDeliver, a delivery service that powers same-day delivery for local merchants in Chicago, agreed to a deal with Deliv, a larger rival that has partnered with big-name retailers including Macy's, Bloomingdale's, Williams-Sonoma, Foot Locker and roughly 250 other national store chains. The company is experiencing rapid growth with an 800 percent organic increase in volume from January to June 2015 compared to the same period in 2014.
WeDeliver, launched in 2013, has some impressive partnerships in its own right. The Chicago-based outfit counts Trunk Club, Barneys New York, Plum Market and Glazed and Infused Doughnuts among the 100 merchants it services.
"We are natural partners," says Deliv chief executive and founder Daphne Carmeli, citing how both companies are obsessed with customer experience and same-day deliveries.
In addition to Chicago, Deliv also operates in California - Los Angeles, San Francisco and San Jose - as well as Seattle, Washington D.C. and New Jersey.
The acquisition comes as more investors decide to back same-day delivery startups such as Zipments in New York and PostMates in San Francisco. So far, Deliv has raised $12.4 million in four rounds from venture capital firms, including General Growth Properties, Macerich, RPM Ventures, Simon Venture Group, Upfront Ventures and Westfield Labs.