Relay, a company transforming the backbone of e-commerce delivery for top retailers, announced a $35 million Series A round led by Plural. The funding round also includes continued participation from its seed investors, Project A and Prologis Ventures (the VC arm of global logistics real estate leader Prologis).
This funding will be used to scale Relay’s delivery network nationwide and continue building a world-class engineering and operational team. It will utilize the latest developments in AI and Machine Learning to transform the UK’s delivery infrastructure.
Billions of parcels are shipped yearly, but many logistics companies still depend on outdated delivery networks designed for brick-and-mortar retail. As a result, retailers are losing a lot of money due to shopping cart abandonment, which is driven largely by delivery costs and speed.
Relay tackles these challenges by providing a more efficient, tech-driven approach that lowers cost while improving performance, unlocking e-commerce’s full potential for businesses of every size.
Launched in 2022, Relay is on a mission to rewire the backbone of e-commerce delivery and turn a persistent cost center into a competitive advantage for retailers. Relay’s AI-based platform enables a decentralised delivery model using hyperlocal nodes, moving away from incumbents’ inefficient “hub and spoke” model. By reducing shipping distances, consolidating deliveries, and automating key workflows, Relay drastically cuts operating expenses for itself and its merchants.
Relay utilizes technology to optimize every step of the delivery lifecycle. It uses AI to dynamically assign parcels, fine-tune route pricing, and minimise the distance travelled by up to 95% compared to incumbents. In this way, Relay can deliver meaningful cost savings.
Relay’s emphasis on data extends beyond network efficiency. Last year, Relay launched a Generative AI Courier Training Tool, boosting courier Proof-of-Delivery compliance by 82%. By preventing fraudulent activity and reducing customer support overhead, Relay’s technology aims to save retailers millions of pounds per year in claims and loss prevention.
Already living in major UK cities such as London and Manchester, Relay plans to expand nationwide over the next two years. The goal is to help retailers meet surging e-commerce demand, eliminate hidden delivery costs, and drive higher conversions in an increasingly competitive marketplace.
Relay was launched by Jonathan Jenssen (CEO) and Nicole Mazza (CCO), who previously served as UK General Manager and Commercial Director at last-mile delivery company Stuart. And there, they grew the UK division from under £1 million in revenue to over £400 million. Now, they’re applying those lessons to transform the entire delivery chain, from the first mile to the last.
KEY QUOTES:
“Logistics isn’t a transportation challenge – it’s a psychological problem grounded in complicated mathematics. At Relay, we’re using technology to build critical logistics infrastructure that brings down costs while improving delivery speed and reliability. We’ve already proven this model with some of the UK’s largest ecommerce retailers, and with support from our partners and investors, we’re ready to scale our network across the country and beyond.”
– Jonathan Jenssen, co-founder and CEO of Relay
“There is a global opportunity to reinvent parcel delivery for the digital age. Jonathan and Nicole are the perfect pair to do this, having lived and breathed the last-mile delivery revolution for almost a decade. Their asset-light model, optimised by AI, is already leading to delivery times that are a fraction of incumbents. I look forward to working with them closely to build an ambitious new delivery platform.”
– Taavet Hinrikus, Partner at Plural
“Since leading Relay’s Seed round, we’ve consistently been impressed by the team’s execution capabilities. This new funding round is a testament to their achievements, enabling them to further invest in their technology and expand their impressive portfolio of top-tier clients.”
– Philipp Werner, Partner at Project A
