Target's Acquisition of Deliv Technology Highlights Walmart's Missing Link
Take this news with a grain of salt, as neither Target (NYSE: TGT) nor Deliv have publicly confirmed it. On the other hand, the deal -- first suggested by NBC News over a month ago and then reiterated by the Wall Street Journal last week -- sounds credible. Target already owns last-mile home delivery platform Shipt. Also owning Deliv's order-pooling and route-management technology would be a nice enhancement to Shipt's capabilities. Besides, the dollar amounts likely to be involved don't require public disclosure.
Regardless, if the reports are true, then the move underscores the importance of offering last-mile deliveries to consumers' homes. It also reaffirms the idea that outsourcing home deliveries is complicated and expensive. They are ideally handled in-house. That means Target's rumored deal is another lost opportunity for bigger rival retailer Walmart (NYSE: WMT).
For investors unfamiliar with it, Deliv says it "provides a new last-mile delivery solution to power same-day delivery for retailers and businesses." The company's website goes on to tell retailers: "Whether you want to integrate Deliv into your e-commerce site or simply book a local delivery today, we've got you covered."
Source Fool.com
