UK delivery startup Hived raises $42 million to expand network

By Nick Carey

LONDON (Reuters) -UK parcel delivery startup Hived, which uses AI to help manage its network, said on Thursday that it has raised $42 million in funding from investors to expand its operations across most of Britain over the next two years.

The Series B round of funding was led by Japanese-backed venture capital firm NordicNinja and included investments from Wex Venture Capital, Marunouchi Innovation Partners and Elemental Impact.

Hived, which uses an entirely-electric fleet of delivery vans and heavy goods vehicles, has signed up retailers including John Lewis, Uniqlo, Zara, and Nespresso for e-commerce deliveries.

The company is one of a number of startups that are using electric vehicles to meet demand for low emission deliveries.

The new funding will be used to expand Hived's delivery network outside London, CEO Murvah Iqbal said.

She said that starting later this year, Hived will serve southern UK cities, before expanding rapidly to the rest of the country.

"We aim to cover 80% of the UK within the next two years," she said. "That's what we're on track for."

The company will also consider whether to expand physically into other markets or instead licence out its technology, she added.

Hived has used AI to develop its own postcode system based on customer volume and demand. The same system also collects data on deliveries that is used to mentor drivers, Iqbal said.

"Every day, a driver will receive some feedback to help them perform better," she said.

(Reporting By Nick Carey; editing by Barbara Lewis)