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The Wall Street Journal reports that United Parcel Service (UPS) is leading a $28 million funding round for Same-day delivery startup Deliv Inc., described as a startup that "fetches goods from brick-and-mortar retailers to bring them to customers’ homes nearby."

The story notes that "last-mile delivery has proven a hotly contested battleground, with dozens of startups, the U.S. Postal Service and Inc. all vying for accounts with retailers, restaurants and grocery stores to bring goods to people’s homes. Delivery is often within one hour at a fee of around $5.

"But it can be difficult to scratch out profit without high volume ...  Deliv Chief Executive Daphne Carmeli said she avoids cost overruns by bundling orders and delivering them at set times, though the company is dependent on customers desiring the service when shopping at other retailers."

UPS is said to see the investment as enabling it "to observe a marketplace and business model in which it doesn’t yet participate."
KC's View:
Interesting. At a time when there is so much disruption and competition in the delivery business, and even Amazon is trying to figure out how much of its shipping functions it can effectively and efficiently bring in-house, it simply makes sense for companies like UPS to explore the edges and see what it can learn and if it makes sense to get acquisitive.

I suspect there will be more deals down the road, not fewer.