Deliverr, a California-based e-commerce fulfillment company, has raised $170 million in a funding round led by Jeff Bezos’ Bezos Expeditions and Barry Sternlicht’s Jaws Ventures. The funding round also included participation from existing investors such as Activant Capital, 8VC, and GLP. The latest funding brings Deliverr’s total funding to $240 million and values the company at $1.2 billion.
Deliverr was founded in 2017 with the aim of helping small and medium-sized businesses compete with larger retailers by providing fast and affordable fulfillment services. The company offers a range of services, including two-day and next-day delivery, as well as same-day and two-hour delivery in select markets. Deliverr’s platform integrates with major e-commerce platforms such as Amazon, Shopify, Walmart, and eBay, making it easy for businesses to manage their inventory and fulfill orders.
Expanding Fulfillment Capabilities
The latest funding will be used to expand Deliverr’s fulfillment capabilities and improve its technology platform. The company plans to invest in new warehouses and automation technology to increase its capacity and speed up delivery times. Deliverr also plans to hire more employees across its engineering, operations, and sales teams.
One of the key areas of focus for Deliverr is improving its machine learning algorithms to better predict demand and optimize inventory management. By analyzing data on customer behavior and sales trends, Deliverr aims to help businesses reduce their inventory costs while ensuring that they always have the right products in stock.
Competing with Amazon
Deliverr’s latest funding round is significant because it was led by Jeff Bezos, the founder of Amazon. Bezos’ investment in Deliverr suggests that he sees the company as a potential competitor to Amazon’s own fulfillment services, which include Fulfillment by Amazon (FBA) and Seller Fulfilled Prime (SFP).
Deliverr’s CEO, Michael Krakaris, has stated that the company is not trying to compete directly with Amazon but rather to provide an alternative for businesses that want to diversify their fulfillment options. However, with Bezos’ investment, it’s clear that he sees Deliverr as a potential threat to Amazon’s dominance in the e-commerce fulfillment space.
The Future of E-commerce Fulfillment
The e-commerce industry has seen explosive growth in recent years, with the COVID-19 pandemic accelerating the shift towards online shopping. As more businesses move online, the demand for fast and reliable fulfillment services will only continue to grow.
Deliverr’s latest funding round is a testament to the company’s potential to disrupt the e-commerce fulfillment industry. By offering affordable and flexible fulfillment options, Deliverr is helping small and medium-sized businesses compete with larger retailers. With the backing of Jeff Bezos and Barry Sternlicht, Deliverr is well-positioned to continue its rapid growth and expand its reach across the United States and beyond.
Deliverr’s latest funding round is a significant milestone for the company and the e-commerce fulfillment industry as a whole. With the backing of Jeff Bezos and Barry Sternlicht, Deliverr has the resources and expertise to continue innovating and expanding its fulfillment capabilities. As more businesses move online, the need for fast and reliable fulfillment services will only continue to grow, and Deliverr is well-positioned to meet this demand.