European parcel delivery startup Relay has secured a substantial $35 million Series A funding round, led by London-based VC firm Plural, to scale its innovative, AI-driven delivery model. This investment comes as the global shipping market is projected to surpass 224 billion parcels by 2030, driven primarily by the e-commerce boom.

The founders of Relay, CEO Jonathan Jenssen and COO Nicole Mazza, drew inspiration from Asia's e-commerce focused parcel delivery infrastructure, which has successfully "Uberized" the last mile of delivery. This approach involves using mini-depots, like local stores, instead of large, far-flung depots near airports or suburban areas. Relay's end-to-end parcel delivery service adopts this model, operating more like a food delivery app, matching couriers to routes, combining deliveries and returns into a single trip, and replacing large trucks with carbon-reducing e-bikes.

This asset-light model significantly reduces energy consumption and waste. According to Jenssen, Relay's approach can save a billion miles a year with just one of its customers, making a substantial environmental impact. The platform is already used by prominent clients such as Vinted, TikTok, Temu, and UK retailers like THG Fulfil, and is now operational in most UK cities, including London and Manchester.

Relay's technology also enhances the delivery experience through computer vision, boosting proof-of-delivery compliance by 82%. The company's system detects whether a parcel has been left in a garbage bin or on a porch, providing valuable feedback to couriers and improving the overall quality of service.

The $35 million Series A round, which also saw participation from Germany's Project A and Prologis Ventures, will enable Relay to further scale its operations and expand its presence in the European market. Taavet Hinrikus, Partner at Plural, expressed his enthusiasm for the company, citing the founders' extensive experience in last-mile delivery and their innovative, AI-optimized model.

As the global shipping market continues to grow, Relay's AI-driven, asset-light approach is poised to revolutionize the European parcel delivery landscape. With its focus on sustainability, efficiency, and customer experience, Relay is well-positioned to capitalize on the increasing demand for e-commerce delivery services.

The investment in Relay highlights the growing interest in innovative logistics and delivery solutions, as companies seek to reduce their environmental footprint while meeting the rising expectations of online shoppers. As the European parcel delivery market continues to evolve, Relay's "Uberized" model is likely to play a significant role in shaping the future of last-mile delivery.