UPS plans to buy out same-day delivery company Roadie

United Parcel Service on Friday announced plans to buy Roadie, a crowdfunding same-day delivery company whose main customers include home improvement chain The Home Depot.

The tie-up comes after major UPS retail customers like Amazon, Walmart and Target built or purchased concert delivery services to provide fast local delivery of everything from fresh food to bulky furniture.

UPS and Roadie did not disclose the financial terms of the deal, which is expected to be finalized in the fourth quarter.

This would add new UPS services just in time for the peak holiday shipping season, when the demand for delivery increases.

“Roadie often provides service for shipments that are not compatible with the UPS network due to their size and perishable nature, and often because they are in shopping bags with no packaging required to go through the UPS system.” UPS said in a statement.

Following the completion of the acquisition, Roadie will continue to operate under its current name.

Goods transported by Roadie will not pass through the UPS network and packages transported by UPS will not pass through the Roadie network, UPS said.

The union representing UPS delivery drivers did not immediately comment on the ongoing deal.

UPS shares were up 1% to $ 191 at midday. Shares of rival FedEx fell 1.2% to $ 257.99.