MINNEAPOLIS — Target is acquiring assets from Deliv, a startup that partners with retailers and restaurants for same-day delivery service.
Target in recent months has been working with Menlo Park, Calif.-based Deliv on test programs. Deliv has technology that intelligently batches orders bound for the same area. Target intends to continue testing the technology to learn how it might aid its supply chain at scale.
As part of the deal, Target is hiring Deliv chief executive officer Daphne Carmeli and some of the company’s employees. Deliv is in the process of winding down operations. It has given employees two months of pay and is working with retail partners to transition delivery services to other providers over the next few months.
Target already owns on-demand delivery service Shipt, which it acquired in late 2017. Target has positioned Shipt as a rival to Amazon Prime’s one-day or same-day shipping service. Shipt offers delivery times as quick as one hour in selected markets. It also offers shoppers a curbside pickup option.
The retailer is leveraging its omnichannel capabilities during the coronavirus pandemic. Target officials said 80,000 new customers signed up for Shipt services in the early weeks of the pandemic.
Target said it has more than 100,000 Shipt personal shoppers, who deliver orders for Target stores as well as nearly 100 other retailers.
The retailer reported that fiscal 2019 comparable online sales increased 29%, marking the sixth consecutive year of digital comp gains of 25% or more. Gains in same-day service sales accounted for three-quarters of the digital comp increase.
Target said fiscal 2019 sales jumped 50% for its Order Pickup service and were up over 500% for its Drive Up curbside service.
“Our game-changing fulfillment services — like Order Pickup, Drive Up and Shipt — have already made same-day delivery and pickup possible for millions of guests,” Arthur Valdez, executive vice president and chief supply chain and logistics officer at Target, said in a statement.