Although Asia was slower to adopt the concept of parcel delivery compared to Europe, it has leveraged e-commerce to develop its delivery infrastructure, essentially “Uberizing” the last mile of deliveries, similar to food delivery services like DoorDash but for parcels. This approach is what inspired the founders of Relay, a European company, to introduce this model to the region, resulting in a significant Series A funding round from investors.

In contrast to most Western parcel delivery companies, which have fixed daily routes for drivers and dispatch them from remote depots near airports to suburban areas, Asia’s “asset-free” model utilizes mini-depots, such as local stores, to reduce overhead, mileage, and carbon emissions associated with parcel delivery, especially for returns.

Relay’s end-to-end parcel delivery service operates similarly to a food delivery app, matching couriers with routes, combining deliveries and returns into a single trip, and replacing large trucks with eco-friendly e-bikes to minimize its carbon footprint.

Co-founded by CEO Jonathan Jenssen and COO Nicole Mazza, who previously worked at last-mile delivery company Stuart, Relay is now entering its AI-driven scale-up phase, poised for significant growth and expansion.

Unlike traditional delivery methods, which often involve taking a static photo as proof of delivery, Relay enhances this process with computer vision, resulting in an 82% increase in proof-of-delivery compliance, according to the company’s estimates.

As Jenssen explained to TechCrunch in an interview: “When we hand over a parcel to a customer, our system can detect whether it has been left in a garbage bin or on the porch, which is just one example of how we improve our quality of service, reduce claims for retailers, and provide feedback to our couriers to enhance their training without increasing our costs.”

This last-mile delivery model significantly reduces energy consumption, with Jenssen noting that “with just one of our customers, we can save a billion miles per year, which translates to a substantial environmental impact when scaled across multiple cities, and with fewer touchpoints, there’s less chance of parcels getting lost.”

Relay’s platform is currently used by notable clients such as Vinted, TikTok, Temu, and UK retailers like THG Fulfil, and has expanded its services to most UK cities, including London and Manchester.

The global shipping market is expected to experience significant growth, with forecasts indicating that it will surpass 224 billion parcels by 2030, up from 161 billion in 2023, primarily driven by the rise of e-commerce.

To support its further expansion, Relay has secured a $35 million Series A funding round led by London-based VC firm Plural, which was co-founded by the founders of fintech giant Wise, with additional participation from Germany’s Project A and Prologis Ventures, the VC arm of global logistics real estate leader Prologis.

Taavet Hinrikus, partner at Plural, expressed his enthusiasm for Relay, stating: “Jonathan and Nicole are the ideal founders to revolutionize last-mile delivery, having spent nearly a decade in the industry. Their asset-light model, optimized by AI, has already resulted in delivery times that are a fraction of those of incumbent companies.”