Meet The Entrepreneur Who Raised $18 Million For His Package Delivery Platform For Apartment Buildings

In 2015, Michael Patton moved from Minneapolis to Dallas to work in corporate finance. Patton, who moved to a large apartment building in Dallas, soon found out that the apartment building was receiving 300 to 400 packages each day and the building was running out of place to store the packages. After doing some research, he found out that the landlords were spending an overwhelming amount of resources to pay leasing agents and labor managers to deal with the packages. 

Patton came up with an idea, left his job, and started Fetch Package, a last-mile delivery platform for apartment communities. The company operates warehouses which accept all packages for residents at client buildings, and coordinates a scheduled, door-to-door delivery service.

Earlier this month, Fetch raised $18 million in a Series B round, led by Iron Gate Capital and Pando Ventures, and joined by existing investors Signal Peak Ventures, Silverton Partners, Seamless, and Venn Ventures.

“It’s a space problem but it’s also a resource allocation problem where most of the apartment buildings just want to get out of the package business altogether,” Patton, who serves as the CEO of the company and who made this year’s 30 Under 30 list, says. 

Fetch works by partnering with individual buildings. All residents are expected to change their shipping address to the nearest Fetch warehouse address, and send all the packages to one of the 22 warehouses that Fetch currently operates, in 14 different markets. 

Fetch would then receive all the packages in bulk (delivered from UPS, Amazon, FedEx, USPS), would log in those packages, and residents would get a notification to pick a 2-hour delivery window to receive their order. 

“Typically Amazon or FedEx would drop off packages to the front office leaving the last 100 yard burden on the leasing office and we are solving that problem for the staff,” Patton says. “In addition to the buildings and the residents, we are providing value to Amazon and FedEx in that they can densify their deliveries and bring thousands packages to us instead of going around 50 apartment communities around the city.”

Fetch generates revenue by charging apartment buildings a fixed price of usually $10-$15 per door per month. The number of “units” (doors) that the company serves has nearly doubled since the beginning of 2020, and the number of units serviced has grown by 497% year-over-year, to a total of 120,000 doors currently serviced.

“Communities know they have to offer a package service and especially with the rapid e-commerce growth over the last few years it’s turned into something that buildings know that they don’t have the resources or space to deal with,” Patton says. “The prevailing thought in the industry is ‘how do we get out of the package and how do we solve this completely and permanently’.” 

Patton initially started the company in February of 2017, and  bootstrapped it for the first few years. The Austin-based company, which currently hires 275 people, had previously raised a $3 million seed round in July 2018, and a $10.5 million Series A in September of 2019.

Original post: Source link