3 Things You Need to Know About ‘Last-Mile’ Struggles and Gains

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After months of speculation, Uber revealed in July that it had acquired on-demand delivery platform Postmates in a $2.65 billion deal. The news comes as another industry player, same-day delivery service Deliv, winds down operations after an eight-year stint. Deliv, currently in the process of selling technology assets to Target, has raised over $80 million in venture capital funding. The company’s aggressive focus on enterprise deals – $5 deliveries from thousands of retail stores – made cost optimization challenging. Low-priced, high-volume, and low-density delivery commitments can make cost minimization difficult and erode profits. Postmates reached a $2.4 billion valuation last year after raising $225 million in new capital. From being a ‘jack of all trades’, even offering IKEA and DIY product deliveries at one point, the company sharpened […]