Germany-based Arive, a company that claims to deliver high-end consumer brands at your doorstep in 30 minutes, has announced that it raised €6M in its Seed round of funding
The round saw participation from leading European investors 468 Capital, La Famiglia VC, and Balderton Capital. The company says it will use the funds in product development, supply chain infrastructure, and expanding its team.
Arive wants to make a difference in the last-mile delivery sector. Gone are the days of two-day or three-day delivery expectations. Startups in the US and Europe have raised close to $3.1 billion to deliver groceries in a 10- or 20-minute time frame.
But limiting it to groceries leaves a gap. With the motto “Get what you want in minutes!”, Arive is here to make an impact.
Bardo Droege, an investor at 468 Capital, says, “Arive’s understanding of consumer buying behaviour means they are well placed to tap into the trends that will come to dominate the e-commerce industry in the post-Covid world.”
How does it work?
Founded by Linus Fries and Maximilian Reeker, Arive brings a curated selection of known brands and last-mile delivery logistics with an aim to change how people shop. Customers can order fitness products, cosmetics, personal care, homeware, tech, and fashion through Arive.
Once a customer places an order, the products are picked up by Arive staff in city warehouses and then delivered by a bike-only fleet in 30-minutes or less.
Brands on the Arive app are chosen depending on multiple criteria which include sustainability, impact on culture, and values. The app also has a wishlist and brand request function that allows customers to advocate for the companies and products they love.
Arive then works directly with brands to offer a selection of their products for on-demand delivery, offering them a new distribution channel as well as a set of new customers. The company earns its revenue through margins or commissions on the products it sells.
The company says that the 30-minute delivery guarantee means it doesn’t need as many micro fulfilment centres as grocery players, helping it to keep infrastructure costs low. Eventually, Arive wants to offer all the brands and products its customers love in every European city and deliver them within 30 minutes.
“We’re excited to transform consumer shopping habits in cities and look forward to working closely with our experienced investors to achieve this,” says Reeker.
Currently, the service is available in Munich, Berlin, Frankfurt, and Hamburg and looks to expand internationally before the end of the year.