Deliverr, the AI-powered two-day delivery service positioned to rival Amazon Prime, has secured $40 million (£30 million) in a Series C funding round.
The funding round was led by Activant Capital, alongside 8VC, GLP and Flexport founder Ryan Peterson, bringing its total investment to over $70 million (£54 million) according to TechCrunch.
Unlike Amazon Prime Deliverr operates without any warehouses or delivery trucks, and offers its free two-day delivery for retailers wherever they sell.
Instead it uses an algorithm to move goods to different parts of the country, storing them in unused space in third-party warehouses and integrating their operations into each warehouse management system.
This means Deliverr’s orders essentially piggyback off third-party warehouses across the country, but its algorithm determines the fastest and cheapest way to deliver them on time.
An inbound algorithm is used when retailers begin sending inventory via Deliverr’s system, using demand graphs to optimise the process if it is a repeat product.
Next an outbound algorithm works out the fastest and cheapest way to deliver that order, utilising relationships with courier services across the country.
“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’s chief executive Michael Krakaris told TechCrunch.