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UPS to Acquire Gig-Delivery Tech Platform Roadie

Deal opens new options for delivery, shipping giant says
Photograph courtesy UPS

In a move the shipping giant said would support a “customer-first” strategy and open new doors for growth, UPS said late last week that it has entered into an agreement to acquire Roadie, the technology platform giving merchants local same-day delivery via contract drivers across the U.S.

Both UPS and Roadie are headquartered in Atlanta.

The shipping giant said it made the move to acquire Roadie to help its customers, including large enterprises, find local same-day delivery solutions for goods of all types—not just traditional packages. Roadie often provides service for shipments not compatible with the UPS network because of their size and perishable nature, and often because they are in shopping bags without the packaging required to move through the UPS system.

Roadie’s technology, combined with UPS’s portfolio, will open doors for new growth opportunities, the company added, with opportunities to improve existing, and potentially add additional small-package capabilities. In contrast to some platforms focused on grocery or meal delivery, Roadie has historically positioned itself as a solution to “deliver anything,” providing delivery options for merchants including Walmart, The Home Depot and Tractor Supply.

The acquisition comes amid much deal activity in the e-commerce and fulfillment fields following explosive growth that came with the pandemic and as leaders in the space like Instacart, Uber and DoorDash increasingly clash with one another. UPS said separately this week it was looking to hire more than 100,000 seasonal employees to support anticipated increases in package volume for the coming holiday season.

The companies are not disclosing the value of the transaction, which is expected to close in the fourth quarter.

Following the completion of the deal, Roadie will operate with the same name and will provide the same service to its customers. UPS said its package car drivers will continue to deliver packages within the UPS network. Goods transported by Roadie will not cross into the UPS network, and packages transported in the UPS network will not cross into the Roadie network, it added.

 

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