Key Takeaways
- Target acquired Deliv to improve its same-day delivery efficiency.
- Acquisition focuses on leveraging Deliv’s advanced logistics and technology.
- Enhances Target’s competition with Amazon and Walmart in delivery services.
- Aims for quicker, more efficient deliveries for Target online shoppers.
When big companies grow, it’s not uncommon for them to merge with other corporations or acquire them.
For the retail giant Target, its 2020 acquisition of the same-day delivery service Deliv meant that it could leverage advanced logistics technology to improve efficiency for its last-mile delivery.
As one of the four largest mall operators in the US and one of the most popular destinations for grocery shopping, Target stands to gain much from Deliv’s crowd-sourced delivery service and technology. This move further enhances its reputation as a top provider of discounted goods.
Insights Into the Acquisition
Target’s relationship with Deliv isn’t new. Already as of 2016 and 2017, Target had used Deliv’s same-day delivery option in small tests. With the impact of the global pandemic felt by both organizations several years later, an acquisition emerged as a viable solution for both parties.
Target had been ramping up its fulfillment, delivery, and shipping services and had closely observed Deliv’s struggles to get funding, with strategic investors unwilling to put money into the business during the pandemic.
The retail outlet also saw value in acquiring the proprietary technology that Deliv used to facilitate the batching and routing of orders.
Target finally acquired the delivery network in 2020 and made lucrative offers to the startup’s key staff, including its CEO, Daphne Carmeli.
While the acquisition’s financial details weren’t disclosed, it was revealed that Target was only integrating Deliv’s proprietary technology instead of the entire company. So, all Deliv’s existing partnerships with companies like Walgreens, Macy’s, and Best Buy ceased to operate.
The Minnesota-based Target hopes that the acquisition will help it discover new ways to deliver packages to customers while reducing shipping costs.
As Target launches more sortation centers, each location will use Deliv’s technology to enhance the selection of delivery partners and the process of generating routes for orders.
Why Did Target Acquire Deliv?
Target’s acquisition of Deliv is only the latest in a recent trend that has seen the acquisitions of platforms like Shipt Drive Up and Order Pickup.
Target continually looks to expand its sortation and distribution center network. With the acquisition of Deliv, Target can better compete with other omnichannel retailers, providing shoppers with an exceptional delivery experience.
The acquisition is also a way to help Target better compete with the likes of Amazon and Walmart, both of whom have acquired smart delivery logistics organizations in recent years.
What Does the Acquisition Mean for Target and Its Retail Business?
The COVID-19 pandemic has forever changed consumer behavior, and retail organizations have had to research digital tech solutions to enhance their shipping and delivery operations.
The acquisition signals Target’s renewed focus on online retail. Aside from its physical retail locations, it’s clear that Target is investing in its supply chain network for route optimization and carrier selection.
By using Deliv’s batching technology to figure out the correct inventory mix to avoid split shipments, Target can better embrace store-based fulfillment.
Wrapping Up
While a lack of funding meant the end of the road for Deliv, its technology has been adopted by one of the biggest retailers in the country.
Thanks to the Deliv acquisition, shoppers on Target can look forward to quicker deliveries. Target customers can shop conveniently on the website, benefitting from efficient same-day and user-friendly delivery services.
