Logistics e-commerce startup Relay, has raised $35 million in a Series A round led by Plural. 

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However, many Western markets still rely on outdated delivery networks designed for brick-and-mortar retail. As a result, retailers are under pressure with the loss of potential sales due to shopping cart abandonment, driven largely by delivery costs and speed. 

Founded in 2022, Relay is on a mission to rewire the backbone of ecommerce delivery. Its AI-powered platform enables a decentralised delivery model using hyperlocal nodes, moving away from incumbents’ inefficient “hub and spoke” model. 

By significantly reducing shipping distances, consolidating deliveries, and automating key workflows, Relay drastically cuts operating expenses for itself and its merchants.

Relay uses AI to assign parcels dynamically, fine-tune route pricing, and minimise the distance travelled by up to 95 per cent compared to incumbents. The company already attracts re-commerce platforms like Vinted, social commerce businesses like TikTok, and international marketplaces including Temu.

In 2024, Relay launched a Generative AI Courier Training Tool that has boosted courier Proof-of-Delivery compliance by 82 per cent. 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 live in major UK cities, including London and Manchester, Relay plans to expand nationwide over the next two years. 

“Logistics isn’t a transportation challenge – it’s a psychological problem grounded in complicated mathematics,” said Jonathan Jenssen, co-founder and CEO of Relay.

 “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 e-commerce retailers, and with support from our partners and investors, we’re ready to scale our network across the country and beyond.”

The company has raised $50 million in total in funding from investors, including Plural, Project A and Prologis Ventures — the VC arm of global logistics real estate leader Prologis. 

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. T

heir asset-light model, optimised by AI, is already leading to delivery times that are a fraction of incumbents.”

Philipp Werner, Partner at Project A, said:

“Since leading Relay’s Seed round, we’ve consistently been impressed by the team’s execution capabilities.”

This new capital will help scale Relay’s delivery network nationwide and to continue building a world-class engineering and operational team.

Lead image: Relay. Photo: uncredited.