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Boxed expands into grocery delivery with acquisition

NEW YORK, Nov. 29, 2021 (GLOBE NEWSWIRE) — Boxed, an e-commerce grocery platform which sells bulk consumables and licenses its e-commerce software to enterprise retailers, today announced the signing of a definitive agreement to acquire MaxDelivery, one of New York’s first on-demand grocery delivery services.

The transaction is expected to close in December 2021, subject to certain undisclosed financial terms and customary closing conditions.

MaxDelivery provides New Yorkers with a fast, easy, and convenient way to have a broad assortment of groceries delivered directly to their door on-demand, through its one-hour delivery service in Manhattan. Since its inception in 2004, MaxDelivery has consistently delivered premium quality service to its customers, processing approximately 2 million orders to date.

MaxDelivery differentiates itself from other ultrafast delivery businesses due to its high average order values of approximately $100, helping yield a history of strong unit economics. Further, all of its employees are full time W-2s, as opposed to 1099 contractors, which allows MaxDelivery to offer consistent quality service, driving customer loyalty with approximately 98% of orders coming from repeat customers each year.

Through the acquisition, Boxed will broaden its capabilities in micro dark-store fulfillment and rapid on-demand grocery delivery. Boxed customers in select markets will also enjoy a significantly expanded fresh assortment offering.

MaxDelivery will also become a client of Boxed’s Software & Services, adopting its proprietary commerce technology to help enable scalability of its operations, and expansion into additional markets over time.

Chieh Huang, Co-founder and Chief Executive Officer of Boxed, said, “This acquisition of MaxDelivery will mark our entry point into the rapidly growing fast-grocery delivery space, in addition to broadening our capabilities in micro dark-store fulfillment and fresh supply chain. Boxed customers have expressed how they value fresh groceries and we are excited to be able to deliver a more comprehensive product offering while benefiting from a complimentary business model with similarly high average order values as Boxed. In the months after closing, we plan to implement MaxDelivery’s model into several additional regions as we generate value for the entire Boxed ecosystem. We believe that MaxDelivery will also benefit from the use of Boxed software technology as it becomes a client of our Software business.”

Chris Siragusa, Founder, President and CTO of MaxDelivery who will join Boxed’s senior leadership team as SVP, Operations, commented, “Empowering New Yorkers to get their fresh groceries online has been our vision since our inception and with Boxed’s support, we will be able to replicate our highly scalable, profitable model into several new markets. We are thrilled to become a part of a Company that is poised for success, led by an exceptional management team, and has a proven commitment to ESG. We are looking forward to becoming a part of the Boxed family.”

On June 13, 2021, Boxed and Seven Oaks Acquisition Corp., a publicly-traded special purpose acquisition company, entered into a definitive agreement relating to the business combination that would result in Boxed becoming a public company upon the closing of the transaction. Boxed also announced its intention to list on the New York Stock Exchange (“NYSE”) upon the closing of the business combination, which is expected in the fourth quarter of 2021. The combined company will be called Boxed, Inc. and its common stock and warrants are expected to list on the NYSE under the new ticker symbols “BOXD” and “BOXD WS,” respectively.

Supplemental Materials
A related investor presentation with more detailed information regarding the proposed transaction will be available here.

About Boxed
Boxed is an e-commerce retailer and an e-commerce enabler. The Company operates an e-commerce retail service that provides bulk pantry consumables to businesses and household customers, without the requirement of a “big-box” store membership. This service is powered by the Company’s own purpose-built storefront, marketplace, analytics, fulfillment, advertising, and robotics technologies. Boxed further enables e-commerce through its Software & Services business, which offers customers in need of an enterprise-level e-commerce platform access to its end-to-end technology. The Company has developed a powerful, unique brand, known for doing right by its customers, employees and society.

About Seven Oaks Acquisition Corp.
Seven Oaks Acquisition Corp. is a special purpose acquisition company formed for the purpose of entering into a business combination. Its goal is to deliver attractive and sustainable returns to investors through an investment in a growth-oriented company that aspires to make a positive social impact with an emphasis on good Environmental, Social and Governance (“ESG”) practices. Seven Oaks raised $258.75 million in its initial public offering in December 2020 and its securities are listed on Nasdaq under the tickers “SVOK,” “SVOKU” and “SVOKW.” Seven Oaks is led by an experienced team of managers, operators and investors who have played important roles in helping build and grow profitable public and private businesses to create value for stockholders. For more information please visit www.sevenoaksacquisition.com.

Media Contacts
Boxed:
Keil Decker
ICR
BoxedPR@icrinc.com