Retailer Target is nearing an asset purchase deal of undisclosed size with Deliv, a US-based same-day delivery service backed by multiple corporates, according to TechCrunch.
The deal will likely include Deliv’s technology and some of its management, but the rest of the business could close, with a final agreement due in the next month or so, TechCrunch said.
Founded in 2012, Deliv runs a goods courier marketplace in 35 US markets that enables clients such as e-commerce and retail companies to arrange same-day delivery of packages. It also provides on-demand consumer delivery on behalf of retail partners such as Walgreens and Macy’s.
Buying Deliv’s assets could further enhance Target’s e-commerce shipping following the firm’s purchase of on-demand delivery business Shipt for $550m in 2017.
However, the corporate wants to pilot Deliv’s technology before proceeding with its full implementation, and much of Deliv’s workforce has been made redundant.
Deliv secured $40m of series C funding in a 2018 round that was backed by technology conglomerate Alphabet’s internet subsidiary Google, logistics firm UPS and Clayton Venture Partners, the corporate venturing arm of car rental holding company Enterprise Holdings.
An unspecified car maker also participated, as did real estate investment trust (REIT) Macerich Company, General Catalyst Partners, PivotNorth Capital, RPM Ventures and Upfront Ventures.
Deliv had previously secured $28m in a 2016 series B round featuring UPS’s Strategic Enterprise Fund as well as shopping mall groups Westfield and General Growth Properties (GGP), since acquired by Brookfield Property Partners.
The series B also included Simon Ventures, the VC fund of Simon Property Group, a REIT, shopping mall and commercial properties operator, along with Taubman Centers – a retail centre-focused REIT –, Upfront Ventures, RPM Ventures and PivotNorth Capital.
Deliv had by that point raised $12.5m in funding already from investors including Westfield, GGP, Simon Property Macerich, Upfront Ventures, RPM Ventures.