Same-Day Delivery Explodes

Silicon Valley startup Deliv announced Monday (Oct. 27) that it would expand its network to four new metropolitan areas and 18 shopping centers — giving Google Express another competitor who has a hand in both the online shopping space and brick-and-mortar sector.

Deliv, which already offers same-day delivery from major stores like Macy’s and Bloomingdale’s, said it will be offering delivery from malls like Beverly Center in Los Angeles and will soon start at select shopping centers in Seattle, Houston, Washington, D.C. and NortherN New Jersey. It already offers same-day delivery in sites in San Francisco, San Jose, Chicago and Los Angeles. Although Google is already in the space, it has had its share of challenges recently as earlier this month three key retailers —American Eagle Outfitters, Office Depot and Lucky (grocery) — announced they’ve changed their minds on moving forward with Google Express. Although Google Express continues to expand, Deliv CEO says its system targets a different audience. Google is also limited to online shopping.

Deliv is attempting to target the brick-and-mortar sector who still attracts a segment of customers at physical stores. At a mall in Menlo Park, California, for example, the company allows mall customers to drop off their merchandise at booths or with mall employees for delivery at set times, which allows customers to continue shopping. The service also work with stores for same-day delivery of goods consumers order from retailers’ websites.

“This works because we’re more like the airport shuttle with 15 people it’s delivering at once than the yellow cab service with just a single passenger,” Chief Executive Daphne Carmeli told Wall Street Journal “It turns out people don’t want their deliveries in one hour, they want set times typically in a few hours. That means we can combine deliveries.”

According to the Wall Street Journal: “Deliv is backed by more than $12 million in funding, including from mall operators Simon, Westfield, General Growth Properties and Macerich , as well as RPM Ventures and Upfront Ventures.” Deliv charges the retailers $5 or more per address for an unlimited number of packages, and customers absorb that charge from retailers. Deliv also has a fleet of on-call drivers, which it uses for delivery.