FoodJets, a locally headquartered food delivery company, sold some of its assets to Apium Logistics LLC this week — a deal expected to benefit Raley’s grocery delivery service.
Apium Logistics LLC is a newly formed logistics company focused on grocery supply chain capabilities. The Teel family, which owns Raley’s, are investors in Apium. The privately held company’s purchase of FoodJets’ grocery delivery assets, including its technology and operations, was completed Monday. Neither company disclosed the value of the transaction.
“We are excited about Apium’s acquisition of the FoodJets grocery delivery business,” said Jen Warner, president of Apium Logistics, in a prepared statement. “It has been a pleasure getting to know Darren (McAdams) and his team and they have set a strong foundation, with a consistent focus on enhancing the overall customer experience.”
FoodJets founder and CEO Darren McAdams started the business as a restaurant delivery platform and quickly expanded it to support grocery delivery. As the demand for grocery e-commerce grew, FoodJets scaled its business and expanded to new markets with Raley’s as a key, early partner, said Chelsea Minor, corporate director of public affairs for West Sacramento-based Raley’s.
The grocer’s e-commerce business has seen significant growth, including an increasing demand for delivery services. Minor said the strategic relationship with FoodJets is part of the grocer’s ongoing digital transformation to deliver a seamless customer experience and is expected to enhance the company’s digital sophistication, bolster its delivery capabilities and allow it to serve more customers.
“This acquisition is an opportunity to extend that capability and to fuel Raley’s omnichannel growth with a focus on access and convenience for our customers,” Warner said in a prepared statement. “We are also pleased to share that all FoodJets grocery delivery team members will continue on with Apium and will be a critical part of our continued success.”
Warner, who is also Raley’s chief administrative officer, will work closely with McAdams to grow the grocery delivery business, Minor said. All business operations, including the driver experience, will not change with the new entity. All grocery delivery employees and drivers will be retained, she said.
In an email sent to employees, a FoodJets representative stated that external branding will continue to reflect the FoodJets brand for the foreseeable future, though it will be operating as Apium Delivery.