ISSUE 11: OCTOBER 2024
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FASTER, CHEAPER, GREENER
Logistics veterans reimagine shipping—and deliver on it.
Mazza and Jonathan Jenssen—both veterans of Stuart, a same-day European delivery service—realized that because most delivery companies were born pre-internet, they’re designed to restock retailer stores rather than deliver to millions of households. Seeking solutions to a legacy infrastructure unable to meet the demands of modern e-commerce, they looked to models in China, which manages over 100 billion parcels annually, and came up with a hybrid solution combining elements of local delivery with on-demand technology.
Unlike many startups that focus solely on last-mile delivery, Relay tackles the entire logistics chain, a comprehensive approach that allows for greater optimization and efficiency. “To build a delivery network for e-commerce that is future-proof,” Mazza says, “we knew we had to redesign the entire network, from the moment we collect a parcel from a retailer's warehouse to when it’s received at the end customer’s doorstep.”
To build a delivery network for e-commerce that is future-proof, we knew we had to redesign the entire network, from the moment we collect a parcel from a retailer's warehouse to when it’s received at the end customer’s doorstep.
At the heart of Relay's innovation is its unique network design centered around the concept of “pit stops.” These hyper-local handover points replace traditional depots, leveraging existing infrastructure, like corner shops, and will potentially expand to include gyms, hotels or even Airbnbs—an approach that not only reduces the need for extensive capital expenditure but also cuts travel distances dramatically.
To illustrate: A parcel traveling between two points 7 miles apart in London might travel 532 miles in an incumbent's network, according to Mazza. With Relay, that same parcel travels just 24 miles, a reduction in mileage that translates to faster deliveries, lower costs and a significantly reduced carbon footprint.
In addition, Relay’s network enables a more flexible and environmentally friendly vehicle mix. Its fleet is 70% mopeds and e-bikes, unlike the traditional van-dependent model. According to Mazza, that’s a “triple win for retailers,” who are thrilled to have a green option for guaranteed next-day delivery service at the rate they're currently paying for 48-hour service.
The company—which operates in Greater London and Manchester and has its sights set on expansion to Europe and the U.S.—has spent the two years since its launch building a framework to capture extensive data points across its operation. By analyzing patterns across multiple retailers, for example, Relay can flag high-risk areas and potentially fraudulent customers, thus directly impacting a retailer's bottom line. “Thanks to these data points, we’re building a defensible model that can help retailers beyond just delivery,” says Mazza.
Relay's focus on technology extends to its courier app, which traces behaviors and interactions. This granular level of data enables the company, which seeks to one day rival major players like UPS, to make informed, data-driven decisions to improve its service. For example, AI-driven scalable technology reviews couriers' proof of delivery photos in real time, automatically flagging compliance issues and providing instant feedback regarding handover success.
A commitment to innovation is ingrained in Relay’s culture, says Mazza. The company encourages employees to experience different stakeholder roles—courier, pit stop owner, retailer—by doing deliveries. “Being on the road, living and breathing the business and feeling every stakeholder’s pain point, gives us a way to know what the courier community is thinking, how it’s evolving, what they’re looking for. To be ahead of the curve, you actually need to be on the ground—to be a part of that ecosystem on a recurring basis.”
Relay also cultivates a blend of talent, seeking employees with tech-giant expertise as well as those who’ve worked in traditional logistics companies. “To break the rules, you’ve got to know the rules,” says Mazza, adding that cross-pollination drives improvement and innovation. “It keeps us ahead of the game.”
