A fresh face in the world of last-mile delivery for grocers has emerged out of Silicon Valley -- only it plans to do things a little differently from such rivals as Instacart.
Deliv, a Menlo Park, Calif.-based company already in 18 markets, has signed with several customers, including FoodKick by FreshDirect, GetFedNYC, GreenBlender, Plated, BloomThat, The Cheese Store of Silverlake, Plum Market and Eataly Chicago, among many others. It will provide same-day services to grocers, meal services and other perishable ecommerce companies nationwide.
“We’ve spent the last five years building the network for last-mile logistics across the country," said Daphne Carmeli, Deliv CEO and co-founder. "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."
Consumers spent nearly $675 billion on groceries last year, and approximately 90 percent of them shopped for food and household supplies weekly. Since many of them desire convenience, ecommerce grocery delivery has seen massive growth, and is anticipated to continue shaking up the traditional grocery industry: Ecommerce grocery sales are predicted to account for up to 20 percent of all grocery sales by 2025.
Within this massive market, demand for rapid delivery has surged. Grocers are deciding between two business models: joining marketplaces like Instacart and Amazon Prime Now, which take ownership of the customer transaction, or offering same-day delivery from their own branded sites powered by last-mile companies such as Deliv.
Deliv Fresh helps ecommerce leaders by getting food to their customers faster, allowing items to maintain ultimate freshness and require less bulky and unnecessary packaging.
“At FreshDirect, fresh food delivery has always been part of our DNA. We launched FoodKick to meet the needs of increasingly busy New Yorkers who want more than fast takeout – they want fresh food and cold booze delivered on-demand,” said Luis Toral, GM of FoodKick by FreshDirect, in Long Island City, N.Y. “With the help of Deliv's service, we can ensure that FoodKick customers have consistent delivery of the freshest, tastiest foods in as little as an hour – allowing them to get back to doing what New Yorkers do best, living in the moment.”