UPS Acquires Same-Day Delivery Startup Roadie

The shipping giant is adding new delivery offerings with its latest acquisition.

Written by Ashley Bowden
Published on Sep. 13, 2021
UPS Acquires Same-Day Delivery Startup Roadie
roadie ceo
Roadie founder and CEO Marc Gorlin. | Photo: Roadie

It’s no surprise that companies in the shipping industry have been busier than ever during the pandemic as people placed more delivery orders than ever before. Beyond typical packages that require several days to get to their destination, there’s been an increased demand for same-day delivery services for a variety of items ranging from food to furniture. Looking to meet this wider range of customer demands, two Atlanta-based companies are joining forces. Shipping giant UPS is expanding its offerings with the acquisition of logistics and same-day delivery company Roadie.

The U.S. market for couriers and local delivery services is currently valued at $126.2 billion and is expected to grow by 4 percent this year, according to findings by IBIS World. Operating in this space, Roadie’s mobile app connects enterprises, small businesses and individuals that want same-day deliveries to a network of 200,000 gig drivers across the country.

The acquisition will largely help UPS expand its services. Roadie tends to provide service for shipments of items like groceries or artwork that aren’t compatible with UPS’s shipping network since they may be oversized, perishable or outfitted with improper packaging.

“Roadie’s leading technology, combined with UPS’s portfolio, will open doors for new growth opportunities,” UPS said in a company blog post. “Roadie’s technology platform also will provide opportunities to improve existing, and potentially add additional, UPS small package capabilities.”

Though the companies are joining forces, Roadie will continue to operate independently under its current name. Roadie will only ship goods within its own network and UPS will continue to operate within its own network as well. Financial details of the transaction were not disclosed, but the deal is expected to go through in Q4 2021.

“The deal brings UPS flexible, scalable local same-day delivery technology and an Atlanta-based innovation team ready to support an array of differentiated service offerings, including two-hour critical and cold-chain compliance,” a Roadie spokesperson told Built In via email.

As the companies continue to grow, Roadie is currently hiring for a handful of Atlanta-based positions with roles spanning its engineering, recruitment, customer support teams and more. UPS is hiring in departments across the board.

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