Roadie, an Atlanta-based on-the-way delivery service, has raised a $37 million oversubscribed Series C funding round, bringing the startup's total funding to $62 million. Investors in the round include The Home Depot, Warren Stephens and Eric Schmidt’s TomorrowVentures.
The funding announcement follows Roadie's recent delivery partnerships with Delta Air Lines, The Home Depot and Walmart. The startup now delivers in 224 metro areas around the nation and up to 100 miles around every major city.
The startup is also backed by David Bonderman, founder of TPG Capital; Guggenheim Partners Executive Chairman Alan Schwartz; Square co-founder Jim McKelvey, and others.
Roadie’s on-the-way model utilizes the unused capacity in passenger vehicles already on the road. The company’s same-day delivery footprint now reaches 89 percent of U.S. households.
“In today’s hyper-competitive retail environment, it’s not enough to only offer same-day delivery to folks in NFL cities,” Marc Gorlin, founder and CEO of Roadie, said in a statement. “Our model is a game-changer for retailers, wholesalers and consumers who want same-day delivery of any item, of any size, to any zip code, at any time. An investment like this further validates our crowdsourced model, which retailers are fast realizing is a highly flexible, scalable, and cost-efficient option to reach all of their customers, wherever they might live.”
“The Home Depot is committed to building the fastest, most efficient supply chain in home improvement, and our customers have made it clear that same-day or next-day deliveries to their homes and job sites are a critical part of that,” Mark Holifield, EVP of The Home Depot Supply Chain, said in a statement. “We’re investing to bring this level of service to 90 percent of the US population, and Roadie is a key partner for us in making this a reality."
With the new funding, Roadie plans to continue to innovate its routing and pricing models and expand its use of machine learning to predict capacity and match deliveries to its community of drivers based on real-time supply and demand. After launching in 2015, Roadie has grown to over 120,000 drivers and delivered to more than 11,000 cities and towns nationwide.
