Uber-for-parcels startup Relay has successfully secured a $10M seed funding round to expand its innovative delivery platform across the UK. This significant investment was led by Project A Ventures of Berlin and Prologis Ventures in the US, underscoring the industry’s confidence in Relay’s potential to revolutionize the e-commerce delivery landscape. Relay’s unique delivery model leverages urban-based “pitstops” and a fleet of couriers to streamline the parcel delivery process, offering an end-to-end service that covers the first, middle, and last miles of delivery. This approach allows Relay to operate with lower overhead costs than traditional delivery services, which rely on suburban depots and sorting centers.
The company’s routing platform employs a sophisticated algorithm that matches couriers with optimal routes, integrating both deliveries and returns into a single journey, mirroring Uber’s efficient logistics model. Relay prides itself on providing local couriers with fair employment terms, including entitlements to sick and holiday pay among other benefits. This commitment to social responsibility sets Relay apart in the gig economy sector, ensuring a sustainable and ethical business model.
Relay has already garnered the attention of major UK retailers such as JD Sports and THG, boasting brands like MyProtein and Glossybox among its clients. Having launched its service in London, Relay is ambitiously planning a UK-wide expansion in 2024. This expansion seeks to challenge established delivery giants like Evri, Royal Mail, Yodel, and DPD, introducing a more agile and e-commerce-focused delivery solution to the market.
Jonathan Jenssen, co-founder and CEO of Relay, highlights the company’s mission to bridge the gap between the fast-paced world of e-commerce and the traditionally slow-moving delivery sector. He notes that while Asia has seen the rise of delivery models specifically designed for e-commerce, Europe and the US have lagged behind, with delivery infrastructures that predate the internet era. Relay’s innovative approach promises to modernize parcel delivery in the UK, aligning it more closely with the dynamic needs of online retailers and consumers alike.
