REEF Technology raises $700mn for ecommerce delivery hubs
Miami, Florida-based REEF Technology is developing a so-called “proximity-as-a-service” platform for urban logistics.
REEF got its start with parking lots and garages, now operating over 4,500 such amenities. It transforms those distributed locations into “neighbourhood hubs” to support local on-demand economies. Local companies and large businesses alike can use its platform to deliver their products to the local area as part of a revenue sharing partnership, with the company operating 100 kitchens nationwide to fulfill food preparation as well as operations.
REEF also operates in non-food sectors, for instance partnering with DHL for ecommerce delivery and other for pop-up COVID-19 testing clinics.
The company yesterday announced a $700mn funding round led by Mubadala Capital, with the participation of a number of heavyweights including UBS Asset Management, Target Global, SoftBank and Oaktree Capital Management. A separate agreement with Oaktree also saw the launch of a $300mn joint vehicle to acquire real estate.
In a press release, Ari Ojalvo, CEO of REEF, said: “We are excited for this next stage of growth and are committed to continue learning, listening and working with our communities to reimagine urban real estate into localized and networked infrastructure that entrepreneurs and cities can use to deliver goods and services sustainably and directly to our neighborhoods. By working together, we can reimagine and rebuild our urban spaces for people, not just cars, and help our cities become more sustainable and inclusive centers of community and opportunity.”
The company said it would use the funds to expand its real estate while also further developing its technology platform.
Ervin Tu, Managing Partner of Softbank Investment Advisers, said: “We believe REEF’s conversion of city parking lots into urban logistics hubs makes them much more useful than in their current form. As we have witnessed during the pandemic, proximity to the consumer is increasingly important in today’s economy.”
(Image: REEF Technologies)