Luxury delivery service Arive wins 18 million euros

In the summer, two young people have business studies – Graduates founded a fast delivery service for high-priced everyday objects. The investment arm of Burda Verlag is now taking part.

Arive

Already at the start of their delivery service Arive, Linus Fries (23) and Maximilian Reeker (22) gathered well-known European investors: the Berlin VCs 468 Capital and La Famiglia as well as the London early-phase fund Balderton Capital. The Munich startup received six million euros in the seed round in late summer. Now Burdaprincipal Investments, the investment company of the well-known media company, the Rocket Internet Fund Global Founders Capital and the previous shareholders are adding almost 18 million euros (20 million dollars) to Arive was created in 2021, in the midst of the hype about the lightning delivery services, and delivers products such as Macbooks, pearl earrings and vases – always from high-quality brands. The startup promises delivery within 30 minutes. A start-up scene test shows , however, that the time is not even close. The courier service is currently active in Berlin, Munich, Frankfurt and Hamburg. The cash injection is intended to help the Munich founding duo expand into other cities, including outside of Germany. In order to be able to cope with the workload, the founders have just advertised 150 positions. The team would then triple.

On average, at least 50 euros in the shopping cart

According to a message, the app has been downloaded about 100,000 times since it was launched in June. At the end of July, Fries and Reeker said in an interview with Gründerszene that the number of orders was growing by 30 percent a week. Back then, returning customers mainly ordered cosmetic products. Since then, the range has grown and now includes more than 1,000 items.

Arive has not yet charged a delivery fee or a minimum order value, the startup currently only finances itself through the trade margin – i.e. the difference between the purchase price and the sales price. This is much higher for non-food products, so Arive could reach profitability faster than the supermarket apps Gorillas and Flink. The average shopping cart for Munich residents is 50 to 100 euros, according to the startup Techcrunch . In the start-up scene test told courier drivers they would deliver 10 to 15 orders a day. In purely mathematical terms, each driver would bring in external sales of 500 to 1,500 euros per day.

Our editor Daniel Hüfner tested the Arive delivery service and ordered an Apple product. You can read how the startup fared here:

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