ShipBob debuts new website and reveals $1M in fundingWednesday, April 29, 2015
ShipBob unveiled a redesigned website today featuring a sleek new look, user-friendly interface, and a client facing web dashboard to place shipping orders. The Y-Combinator backed startup also announced that it has raised a $1 million seed round with investors including SV Angels, Funders Club, and WeFunder.
ShipBob’s on-demand shipping service makes shipping effortless and efficient for small businesses. The startup takes care of pick up, packing, shipping, and tracking -- helping business owners save time and money. Businesses simply schedule a pick up via ShipBob’s mobile apps or web form and a “Ship Captain” will come to their location within 30 minutes to collect the items. ShipBob then packages the items and mails them via the lowest cost, most reliable carrier, comparing prices across USPS, FedEx, and UPS to get the best deal. Once the package is en route, ShipBob sends a tracking number and an update when the package arrives.
The Chicago-based startup participated in Y Combinator’s Summer 2014 class. Cofounders Dhruv Saxena and Divey Gulati previously founded an ecommerce company called SnailMailPics and experienced first hand how much time they spent preparing packages and waiting in line at the post office. They knew small businesses needed a better way to handle shipping and ShipBob was born.
“Small business owners spend up to 3-4 hours in packaging and shipping their online orders each day. ShipBob is their outsourced shipping and logistics partner. We integrate directly with their online store, and pick up items from their location as soon as they receive an order. We package and ship using the lowest cost carrier and give them access to our discounted shipping rates. Businesses not only save time, but also money by using ShipBob! We have seen a lot of traction from businesses in Chicago, and now we are taking our learnings from Chicago and expanding to NYC in the summer”.
Over 1.3 billion packages are sent in the U.S. every month. The stratospheric rise of ecommerce means that more small businesses than ever have shipping needs. Effectively managing shipping costs, both in terms of time and money, directly affects a business’s bottom line. However, shipping is a hassle. Small businesses have to purchase a box and packaging material, package the item, print labels, stand in line at post office, and then save receipts to track the packages. This laborious process presents a wealth of opportunities for innovation.
According to a study from DHL, social, business, and technology trends are all driving the growth of real-time services and “convenience logistics,” whereby consumers and small business owners are willing to pay a small fee for instant direct pick-up/delivery. ShipBob is at the forefront of innovation in this space. The startup leverages mobile technology, on-demand ride services like Lyft and Uber, and an automation platform that gets businesses the best possible shipping deals. I
This funding signals ShipBob’s early traction, as well as its innovative approach to solving a pervasive small business need. The startup will use this investment to establish a footprint in San Francisco and hire key people to fuel product development.View all Industry News