Logistics eCommerce shipping company Deliverr has raised $40 million in a Series C funding round, to help give companies that aren’t Amazon the ability to provide two-day shipping, according to a report by TechCrunch.
Deliverr does not have warehouses or delivery vehicles, but it does have an advanced algorithm and relationships with warehouses around the country.
The round was led by Activant Capital, with 8VC, GLP and the founder of Flexport, Ryan Peterson, all participating. The company said it has raised $70 million so far.
“What we enable a merchant to do is offer free two-day delivery anywhere they sell, whether it’s Walmart, eBay, even Amazon, because we integrate into Prime or their own website,” Deliverr CEO and Co-Founder Michael Krakaris said.
Krakaris used to work at Twilio, which delivered messages without having any carriers. He said he learned that when starting a business, if you have data and a good algorithm, you have a good base.
Most warehouses have unused space, he said. The company uses data to move around goods and store them in warehouse space that’s available, and then it uses the warehouse itself to get the goods.
The company integrates into the warehouse’s own software, so that goods get picked up along with everything else. Deliverr’s system helps figure out the fastest and most inexpensive way to deliver the goods.
“Inbound is when a merchant is getting started sending inventory into the Deliverr network,” Krakaris said. “And so we’re doing a few things. If it’s a repeat item, we already have a demand graph for that item so we’re just optimizing that existing demand.”
Some of the work is logical, like not stocking winter jackets in Florida. When an order does come in, all the data is compiled to find the best way to get it to its destination within the delivery window.
Krakaris said his success rate is more than 95 percent.
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