Target is looking to buy Deliv’s same-day delivery tech

Target, which already owns on-demand delivery service Shipt, is in talks to buy assets from Deliv, NBC News first reported.

“Deliv is in the process of completing a deal to sell technology assets to Target and Deliv’s CEO along with a subset of the team will be moving over to Target,” a Deliv spokesperson told TechCrunch. “Target is not involved in the wind-down. We are working with our retail partners to transition delivery services to other providers during the next 90 days.”

If the deal goes through, Target will reportedly bring on Deliv CEO Daphne Carmeli and some of Deliv’s employees. This comes just one day after The Wall Street Journal reported Deliv would be ceasing its on-demand delivery operations on or before August 4.

Deliv, founded in 2012, has raised $80.4 million in venture capital and currently operates same-day delivery of things like groceries and prescriptions in 35 markets. Deliv has partnerships in place with companies like Best Buy, Walgreens and Macy’s, but those are not expected to remain intact.

Deliv previously had a partnership with Walmart, but that ended in February 2019. At the time, Deliv said the Walmart partnership did not make up a large chunk of its operations.

If this deal goes through, this would mark Target’s second acquisition in the delivery space. In December 2017, Target bought same-day delivery service Shipt for $550 million. Since then, Target has launched a dedicated shopping site for same-delivery service, powered by Shipt. But as of late, Target has been under fire for its practices toward Shipt workers, especially during the COVID-19 pandemic. In early April, Shipt shoppers walked off work to demand an extended sick pay policy, hazard pay and personal protective equipment.

TechCrunch has reached out to Target and will update this if we hear back.

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