Boxed, an ecommerce grocery platform that sells bulk consumables and licenses its software to retailers, is acquiring MaxDelivery, one of New York’s first on-demand grocery delivery services. The transaction is expected to close in December 2021.
Through the acquisition, Boxed will broaden its capabilities in micro dark-store fulfillment and rapid on-demand grocery delivery. Boxed customers in select markets will also enjoy an expanded fresh assortment offering.
MaxDelivery, which differentiates itself from other ultrafast delivery businesses due to its high average order values of approximately $100, will also become a client of Boxed’s Software & Services, adopting its proprietary commerce technology to help enable scalability of its operations and expansion into additional markets over time.
Since its inception in 2004, MaxDelivery has processed approximately 2 million orders. The company attributes 98 percent of orders coming from repeat customers to the fact that all of its employees are full time W-2s, as opposed to 1099 contractors, which allows MaxDelivery to offer consistent quality service.
Chris Siragusa, founder, president and CTO of MaxDelivery, who will join Boxed’s senior leadership team as senior vice president of operations, commented in a statement, “Empowering New Yorkers to get their fresh groceries online has been our vision since our inception and with Boxed’s support we will be able to replicate our highly scalable, profitable model into several new markets.”
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