PICKUP raises $15M for white-glove retail delivery
On Tuesday, PICKUP, a last mile delivery solution, announced that it had raised $ 15 million in a Series B funding round and will use the money to expand and focus on the service experience.
The round was led by NewRoad Capital, including existing investors TDF Ventures, Noro-Moseley Partners and Florida Funders. New investors Autotech Ventures and the New York Angels also participated in the round. The company has raised a total of $ 26 million.
With PICKUP Enterprise, the company’s integrated API solution, commercial businesses and national retailers such as Big Lots and American Standard can deliver goods on the same day, especially large, high-quality items that most delivery services are currently declining. This delivery includes the white glove service, an indoor delivery and the assembly of items from the company’s Good Guy network.
PICKUP’s retailer partners can offer delivery of all items in their stores knowing that the company’s good guys or one of its courier partners such as Postmates will handle all aspects of delivery including returns.
In an interview with FreightWaves, Good Guy founder and boss Brenda Stoner stated that a major problem with these types of deliveries is having a stranger come to your home and how this affects the consumer’s buying habits of large bulky items.
“I got excited about the problem of who you bring into your home. Confidence in this situation became paramount in designing the business, ”she said. “It was a human problem and we solved it with people equipped with the best technology we can find.”
PICKUP’s Good Guys must go through a background check, have a valid license, insurance, vehicle registration and inspection in order for the company to provide safe and trustworthy delivery to its customers. The good guys can choose which jobs to take and keep 100% of any tips they give during delivery.
“The top 15% of the guys do most of the work and are out and about every day. They have made a career choice and it is enough to get everything they need financially, ”explained Stoner. “When you can do that, you have control and consistency, which is critical to business. This only works if you can find the right people on the other end of the app. “
The company’s network helps retailers increase sales. Customers have reported a 2X increase in online shopping cart sizes and a 23% conversion lift as the PICKUP integration enables shoppers to buy what they need without having to wonder how they get that good in them Will bring home.
Tracy Black, an operational partner of NewRoad Capital who recently joined PICKUP’s board of directors, told FreightWaves how important this is for retailers who are moving forward.
“What is really attractive is the technology platform that enables the retailer to create a full range of products,” she said. “By integrating with corporate order management systems, you can meet this retailer anywhere on their omnichannel journey.”
Stoner described the change in buying habits.
“Now you can turn the couch, the mattress or the tires into an impulse,” she said. “We also solve your other problem, the return process. The point-to-point model we have can also fix the reserve problem. “
PICKUP currently operates in 75 US cities and works with a number of large branded stores. With its new funds, the company plans to expand into other networks, including California and Canada. But first and foremost, it will focus on creating an even better service experience.
“We have the footprint we want,” said Stoner. “Now is how we do more and better when it comes to technology and operations.”
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