UPS Moves Into Same-Day Gig Delivery With Roadie Acquisition

UPS is moving into the gig economy, same-day delivery space with the acquisition of Roadie, a technology platform that connects people with items to ship with drivers headed in that direction. The terms were not disclosed, according to a press release on Friday (Sept. 10).

Headquartered in Atlanta, Georgia and founded in 2014 by Marc Gorlin, Roadie will remain in operation under its own name and continue to provide the same services to its customers. The UPS delivery network will not cross into Roadie’s network and vice versa, UPS said in the release.

See also: UPS Dips a Toe Into Same-Day Delivery

The global shipping, receiving and supply chain management firm said that its customers are increasingly looking for same-day delivery to local addresses for all types of goods that are not necessarily traditional packages. Roadie offers a way to deliver packages that are not compatible with the UPS network, either due to size, packaging or perishable food items, according to the release.

By providing complementary services, Roadie’s technology and the UPS portfolio will “open doors for new growth opportunities.” Roadie’s platform and innovative technology will enable UPS to expand and improve upon its capability to handle small packages, the press release stated.

Read more: Demand for Next-Day Delivery Drives Need for Efficient Logistics

The Roadie technology platform was developed to link merchants and consumers with gig drivers to more sustainably advance “efficient and scalable same-day local delivery services nationwide.”

Roadie is the first “on-the-way” crowdsourced delivery platform. The company chose to utilize the extra space in passenger vehicles as part of its business model, connecting people with items to send with drivers heading in the right direction. Roadie’s collaborative model enables fast, flexible, scalable delivery that reaches 90% of all U.S. households, according to its website.

The delivery startup works with consumers, small businesses and global brands to make same-day and important deliveries possible across the country. Currently, Roadie has 200,000 verified drivers. Its drivers have made deliveries to over 20,000 U.S. ZIP codes, which is the largest same-day local delivery footprint in the U.S., per the company’s website.