Relay, a parcel delivery startup founded by Jonathan Jenssen and Nicole Mazza, has successfully raised $35 million in a Series A round, signaling its entry into the AI-driven scale-up phase. Relay’s business model is inspired by Asia’s e-commerce-driven, “Uberized” delivery system, which contrasts with the traditional Western parcel delivery approach. Instead of using fixed routes from large depots, Relay operates on a more dynamic, efficient system using mini-depots and carbon-reducing e-bikes for last-mile deliveries.
Relay’s platform works similarly to a food delivery app, matching couriers with deliveries and returns while optimizing routes for efficiency. This asset-light model significantly reduces overhead, cuts carbon emissions, and minimizes mileage waste. It’s a major improvement over the fixed route, large truck system used by many Western carriers.
One standout feature of Relay’s service is its use of computer vision for proof-of-delivery. Unlike traditional static photos, Relay can analyze delivery locations and detect whether parcels have been left in secure or inappropriate spots, such as a garbage bin or porch. This enhances delivery compliance by 82%, according to Relay’s estimates, while reducing claims for retailers. Couriers receive real-time feedback, improving their service quality over time.
Relay’s efficient system also offers a significant environmental benefit. Jenssen shared that their model can save up to a billion miles annually for just one customer, leading to a reduction in carbon emissions and fewer lost parcels due to fewer touchpoints.
Already used by companies like Vinted, TikTok, Temu, and U.K. retailers like THG Fulfil, Relay has expanded into most U.K. cities, including London and Manchester. The global parcel delivery market is set to surpass 224 billion parcels by 2030, driven by e-commerce growth, which positions Relay for further success.
Relay’s $35 million Series A round was led by Plural, a London-based VC fund co-founded by the founders of fintech giant Wise. It also saw participation from Project A and Prologis Ventures, the VC arm of global logistics leader Prologis. Plural partner Taavet Hinrikus praised Jenssen and Mazza, noting that their asset-light, AI-powered approach is already delivering faster delivery times than traditional carriers.
