Target, which already owns on-demand delivery service Shipt, is planning to acquire technology from Deliv, a startup that focuses on last-mile batched delivery. The deal is expected to close in around one month.

Deliv’s Technology Will Help Target Unveil New Ways To Deliver Packages

As more and more consumers shop online, this last-mile platform will help Target to unveil new ways to deliver packages and reduce shipping costs. The deal terms have not been disclosed.

Deliv uses the technology advancements of omnichannel platforms and GPS-enabled smartphones to mobilize fleets of drivers. Its existing clients include Best Buy, GroceryKey, Macy’s and Walgreens. The company previously had a partnership with Walmart, which ended in February 2019. Target reportedly also had some exposure to Deliv’s technology in 2019 and early 2020.

Deliv CEO Daphne Carmeli and other members of the Deliv team will join Target for research and development of this technology. Carmeli reportedly wrote in an email to employees that the company would shut down for internal reconstruction by August 4, 2020.

Deliv has raised about $85 million in funding since it launched in 2012 and was valued at about $190 million in 2018, according to data from research firm PitchBook.

The Deal Marks Target’s Third Acquisition in the Delivery Space

The deal comes as Target looks to step up its order fulfillment strategy, explore new ways to deliver packages and reduce shipping costs.

In August 2017, Target bought transportation technology company Grand Junction, as the retailer was transforming its supply chain and logistics capabilities in order to provide customers with more speed and convenience. Target then built a network of more than 700 carriers connected to the platform, essentially creating a marketplace for delivery.

In December 2017, Target bought same-day delivery service Shipt for $550 million. Since then, the retailer has launched a dedicated shopping site for its same-day delivery service, powered by Shipt. Target took advantage of Shipt’s large network of stores, technology platform and shopper community to quickly offer same-day delivery to millions of customers.

Target is planning to buy Deliv’s technology in May 2020, which will mark the retailer’s third acquisition in the delivery space.

A full timeline of Target’s key events is available here.