The surge in peer-to-peer selling and social commerce, combined with demands for faster and cheaper deliveries, is transforming online retail. Yet many Western markets lag, still using outdated delivery networks designed for traditional retail — putting sellers at risk. Forrester estimates retailers lose over $18 billion annually from abandoned shopping carts due to delivery costs and speed concerns.
Relay, a London-based e-commerce delivery platform, offers a solution through its tech-driven approach. By reducing costs while enhancing performance, it aims to unlock e-commerce’s potential for businesses of every size. The company has secured $35M in Series A funding led by Plural, with ongoing support from seed investors Project A and Prologis Ventures. This brings the total funding of the company to $50M.
This fresh capital will fund Relay’s nationwide network expansion and strengthen its world-class engineering and operational teams, leveraging cutting-edge AI and machine learning to transform UK delivery infrastructure.
Transforming the backbone of e-commerce delivery
Founded in 2022 by Jonathan Jenssen (CEO) and Nicole Mazza (CCO) — former UK General Manager and Commercial Director at last-mile delivery company Stuart — Relay aims to transform e-commerce delivery and change a persistent cost centre into a competitive advantage for retailers. Their technology-first delivery model combines flexible on-demand courier fleets with a distributed hyperlocal network to cut costs and enhance customer experience.
Nicole Mazza told TFN: “We realised that today’s delivery networks are stuck in the past, built for an era of brick-and-mortar stores, not the explosion of online shopping and social commerce we see today. This outdated model costs retailers billions in lost sales and prevents e-commerce from reaching its full potential.”
She added: “Relay is changing that with a decentralised, AI-powered approach that slashes costs and dramatically improves efficiency. We’re not just delivering packages; we’re rewiring the entire system to give businesses a competitive edge.”
Relay uses technology to optimise every delivery step — employing AI to dynamically assign parcels, adjust route pricing, and reduce travel distance by up to 95% compared to competitors, delivering significant cost savings. This efficient, scalable model has attracted major players, including re-commerce platform Vinted, social commerce giant TikTok, international marketplaces like Temu, and prominent UK retailers like THG Fulfil.
Relay’s data-driven approach extends beyond network efficiency. In 2024, they launched a Generative AI Courier Training Tool that improved courier Proof-of-Delivery compliance by 82%. By curbing fraud and reducing support costs, Relay’s technology helps retailers save millions of pounds annually in claims and loss prevention.
Currently operating in major UK cities like London and Manchester, Relay plans nationwide expansion over the next two years. They aim to help retailers meet growing e-commerce demand, eliminate hidden delivery costs, and boost conversions in an increasingly competitive market. Mazza emphasised: “Over the next two years, we’re focused on expanding Relay nationwide to help retailers across the UK navigate skyrocketing e-commerce demand. By eliminating hidden delivery costs and optimising the entire process, we are enabling businesses to thrive in an increasingly competitive market.”
Relay: decentralised delivery model for last-mile logistics
In a conversation with TFN, Mazza noted: “Unlike traditional carriers, we leverage AI to optimise every step of the delivery process. From dynamically assigning parcels and fine-tuning route pricing to minimizing travel distances by up to 95%, our technology delivers significant cost and environmental savings that traditional carriers simply can’t match. This is better in the long term for retailers and their customers.”
Relay’s AI-powered platform enables a decentralised delivery model using hyperlocal nodes, departing from the traditional “hub and spoke” model. The company significantly cuts operating costs for itself and its merchants through reduced shipping distances, consolidated deliveries, and automated workflows.
Jonathan Jenssen, co-founder and CEO of Relay, said: “At Relay, we’re using technology to build critical logistics infrastructure that reduces 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.”
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. Their 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 funding round is a testament to their achievements, enabling them to further invest in their technology and expand their impressive portfolio of top-tier clients.”
UK to navigate skyrocketing e-commerce demand
As Mazza puts it, “We see logistics as a puzzle to be solved, not a roadblock to be navigated. We’re not just optimising existing systems; we’re building the next generation of delivery infrastructure. Our technology tackles the complex challenges behind efficient delivery, optimising every step to reduce costs and improve speed and reliability. This funding allows us to accelerate our growth, bringing our innovative solutions to more businesses and transforming the way goods move.”
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