The deal is financially immaterial to Target and the technology won’t be immediately deployed by the retailer, according to a person familiar with the situation. The retailer expects to use the Deliv technology in its research and development regarding how to most efficiently make deliveries in urban areas, the person said.
Target saw an opportunity to buy the technology from Menlo Park, Calif.-based Deliv when that company was in the process of shutting down, the person said.
NBC News reported earlier that Target is in the process of buying the tech assets.
“Due to a confluence of events over the past few months, Deliv will unfortunately be winding down our operations over the next 90 days. The last day of service will be on or before August 4th, 2020,” Deliv’s founder and Chief Executive Daphne Carmeli wrote in an email sent to its delivery workers Wednesday.
Deliv, which was valued at $190 million in 2018, raised about $85 million in venture capital since its founding in 2012, according to PitchBook Data Inc. Deliv’s venture investors include General Catalyst, PivotNorth Capital, Redpoint Ventures and Upfront Ventures, according to its website. Deliv also had capital from corporate investors including United Parcel Service Inc., Google and Enterprise Holdings Inc.