White-Label Delivery Service Tyltgo Closes $1.8 Million Seed Round

By James White Saturday, April 3, 2021

Convenient and reliable delivery services can make or break a purchase for consumers. Perhaps that's partly why ecommerce companies like Instacart and Doordash have experienced rapid growth, leading more small businesses to offer delivery options to customers, especially amid quarantine restrictions. Startup company Tyltgo secured $1.8 million from seed round investors on Monday to expand its white-label logistics and delivery service platform for both brick-and-mortar small business owners and ecommerce companies in Canada.

“These are uncertain times for retailers, but Tyltgo helps these merchants connect with their customers in an innovative way that will continue to serve them after lockdown restrictions lift,” said Jaden Pereira, CEO and co-founder of Tyltgo. “This capital will allow us to help more retailers across Ontario and boost local economies.”

Financing for the startup business was led by San Francisco venture capital firm TI Platform Management. The logistics company was also backed by Y Combinator and angel investor Charles Songhurst, founding partner of Katana Capital and former Head of Corporate Strategy at Microsoft. Furthermore, Khaled Hussein of TI Platform Management will be joining the board at the startup business as Chairman.

A woman using a delivery app on a smartphone.

Branded Delivery for Small Businesses

Founded in 2018 by Pereira and entrepreneur Aaron Paul, the Ontario-headquartered startup business takes a technology-driven approach to delivery services and logistics. Pereira originally developed the idea for Tyltgo during his time at college, where students without cars would constantly ask for rides to pick up groceries and other goods.

The startup company works with local small businesses and companies to integrate their application programming interface (API) with their ecommerce storefront. When an order is placed, data is sent to Tyltgo, and the startup company takes over the rest of the logistics, allowing business owners to focus on running their companies. Tyltgo claims that its platform is up to 50% cheaper than the competition.

Tyltgo has its own couriers to deliver goods, similar to DoorDash or Uber. However, the white-label startup business allows local companies to brand the delivery and tracking services under their own name, unlike other competitors. Couriers work as contractors, setting their own hours and accepting the routes they choose. Using a proprietary algorithm, Tyltgo quickly determines the optimal route for delivery and directs the courier to the pickup and dropoff locations accordingly. Customers receive shipping updates as well as live-tracking services throughout the process.

“Tyltgo has the potential to be one of Canada’s next great success stories,” Hussein said. “Tyltgo’s business model combines several innovations in same-day delivery that will boost Canada’s sharing economy.”

Riding the Ecommerce Wave

With ecommerce giants like Amazon dominating the industry, last-mile delivery and logistics services like those offered by Tyltgo are becoming increasingly important. Small ecommerce startups hoping to compete with titans in the game must be able to offer competitive delivery services similar to Amazon’s Prime Shipping, which is responsible for setting the expectations of many consumers. Market research suggests that the North American last-mile delivery market will grow by $59.81 billion from 2021 to 2025.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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