UPS Seeks Share of Same-Day Delivery Market with Roadie Acquisition

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United Parcel Service (UPS) plans to buy Roadie, a delivery platform supporting local same-day delivery across the country. Roadie’s crowdsourced network of 200,000 drivers have delivered orders to more than 20,000 ZIP codes, according to the company. Financial terms of the acquisition, which is expected to close in Q4 2021, were not disclosed.

Roadie, which employs drivers using their own vehicles, can encompass shipments that aren’t compatible with UPS processes, such as perishables or items in shopping bags rather than boxes or other shipping containers. Although speed and convenience are key value propositions for the company, it also emphasizes the sustainability benefits of its “on-the-way” delivery model, which taps into the “invisible transportation grid” of trips drivers take throughout their day. Retailers such as Bed Bath & Beyond, Michaels and The Home Depot have partnered with Roadie to offer their customers a larger menu of delivery options.

Listen to an interview with Roadie’s founder here:

According to a statement on the UPS website, “Roadie’s leading technology, combined with UPS’s portfolio, will open doors for new growth opportunities. Roadie’s technology platform also will provide opportunities to improve existing, and potentially add additional, UPS small package capabilities. The Roadie technology platform is purpose-build to connect merchants and consumers with contract drivers to enable efficient and scalable same-day local delivery services nationwide.”

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Roadie will continue to operate under its own name following the purchase’s completion. Goods transported by Roadie will not cross into the UPS network, and vice versa.