Same-day delivery startup Deliv announced it has joined the e-commerce grocery game with the launch of Deliv Fresh. The service provides same-day delivery from numerous grocers and meal services across the U.S.
Some of Deliv's new clients include FoodKick by FreshDirect, GetFedNYC, GreenBlender, Plated, BloomThat, The Cheese Store of Silverlake, Plum Market and Eataly Chicago.
Online grocery sales are expected to account for as much as 20% of the $675 billion industry by 2025.
“It’s the largest single growth rate of any major category in retail since the early days of the internet,” Deliv CEO Daphne Carmeli told FierceRetail. “Research shows about one-fifth of people surveyed had purchased food on the internet.”
The trend is being driven by Amazon, Instacart and meal subscription companies who are resetting customer expectations around perishables.
Currently, two business models exist in the e-commerce grocery world: marketing places such as Instacart and Amazon Prime Now, or branded sites that are powered by last-mile companies such as Deliv. Companies like Deliv leverage local stores as delivery hubs.
“We’ve spent the last five years building the network for last-mile logistics across the country. Industries like grocery that didn’t have cost-effective delivery options are now able to tap into our network and offer a fresh customer experience,” said Carmeli.
Deliv currently operates in 18 markets and more than 100 cities. But teaming up with meal delivery services and grocers comes with its own set of challenges that require unique technologies and logistics.
Some of these challenges include a high volume of pooled orders picked up and routed all at the same time; routing orders from one pick-up location at the same time to make it most cost effective; rolling delivery windows; one-hour delivery demands; and managing the logistics and tracking the return of totes at the end of the route.
“Deliv Fresh helps e-commerce leaders by getting food to their customers faster, allowing items to maintain ultimate freshness and require less bulky and unnecessary packaging. The company has also proven to be a game-changer for omnichannel retailers who can leverage their stores as local distribution centers and delivery hubs,” Carmeli said. “We are focused to continue to grow geographically with our current offering as well as continue to innovate within the last mile services arena across new segments.”