London startup Relay has raised £28m Series A funding to take on delivery giants DPD, Evri and Yodel.
The AI-powered logistics network, live in London and Manchester, is already used by the likes of Vinted, TikTok, Temu and THG Fulfil.
It says the rise of peer-to-peer selling and social commerce platforms, along with consumer expectations for faster and cheaper deliveries, is reshaping how we buy and sell online – however many Western markets are still relying on outdated delivery networks designed for brick-and-mortar retail.
Founded in 2022, Relay aims to provide a more efficient, tech-driven approach that lowers cost while improving performance. Its decentralised delivery model uses hyperlocal nodes, moving away from the ‘hub and spoke’ model used by incumbents which it says is inefficient.
By significantly reducing shipping distances, consolidating deliveries, and automating key workflows, Relay claims to drastically cut operating expenses for itself and its merchants.
Relay leverages technology to optimise every step of the delivery lifecycle – using AI to dynamically assign parcels, fine-tune route pricing, and minimise the distance travelled by up to 95%.
Relay plans to expand nationwide over the next two years following the latest funding led by Plural. The round also includes continued participation from its seed investors, Project A and Prologis Ventures, the VC arm of global logistics real estate leader Prologis.
The startup was founded by Jonathan Jenssen (CEO) and Nicole Mazza (CCO), who previously served as UK general manager and commercial director at last-mile delivery company Stuart. There, they grew the UK division from under £1m in revenue to over £400m.
“Logistics isn’t a transportation challenge – it’s a psychological problem grounded in complicated mathematics,” said Jenssen.
“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.”
Taavet Hinrikus, partner at Plural, said: “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.”