Last-mile delivery has been ripe for tech disruption. And with more people ordering food and other products for delivery due to the COVID-19 pandemic, startups in the space are primed for growth.
One such startup is San Francisco-based Onfleet, which announced its $14 million Series A funding round on Friday. Growth equity investor Kennet Partners led the round, which brings Onfleet’s total funding to $20 million since launching in 2015.
Onfleet has designed a software platform that helps businesses manage their deliveries. It can optimize delivery routes to reduce costs, give delivery drivers easy instructions through its app and provide customers with updates about their orders.
While other services like DoorDash, Instacart and Postmates hire gig workers to act as middlemen when delivering orders, Onfleet gives businesses the tools to run their own delivery programs. Onfleet’s software supports delivery for everything from laundry to flowers and groceries, with customers including Kroger, Sweetgreen, Drizly, Imperfect Foods, Alto Pharmacy and Gap.
This model allowed Onfleet to reach profitability two years ago. This past year, the company added hundreds of new customers, doubled its overall delivery volume year-over-year and achieved triple-digit revenue growth, it reported. Today, Onfleet has facilitated more than 80 million deliveries in more than 90 countries.
The new funding will allow the company to continue this momentum by expanding its product offerings and growing its team. It’s currently hiring for roles in engineering and sales.
“We are living in a time of never-before-seen global economic uncertainty, which has turned the need for fast, reliable delivery services from a luxury to a basic necessity,” Onfleet CEO and co-founder Khaled Naim said in a statement. “In a few short months, the importance of our work has become even more pronounced, and we are doing everything we can to help our clients quickly and efficiently deliver goods to their customers.”
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