According to PE Hub, Roadie, Inc, a mobile app that tries to link up people who need things delivered with drivers with unused passenger capacity in their vehicles, has launched with $10 million in Series A funding. Investors participating in the funding round include UPS Strategic Enterprise Fund,TomorrowVentures, Warren Stephens of Stephens Inc., Guggenheim Partners Executive Chairman Alan Schwartz, Square co-founder Jim McKelvey, the Mellon Group and former ISSCEO Tom Noonan.
Roadie, Inc., launched today with $10 million in Series A funding and its Roadie mobile app that people use to get items where they need to be by tapping into the excess capacity of passenger vehicles already on the road.
Investors participating in the round include the UPS Strategic Enterprise Fund, Eric Schmidt’s TomorrowVentures, Warren Stephens of Stephens Inc., Guggenheim Partners’ Executive Chairman Alan Schwartz, Square Co-founder Jim McKelvey, the Mellon Group, and former CEO of ISS Tom Noonan, among others.
“Roadie is unlocking a transportation heatmap to light up the sharing economy in a meaningful way,” said Court Coursey, Managing Partner, TomorrowVentures. “It’s a win-win for everyone because consumers get their items delivered more efficiently using excess cargo capacity already on the road, and drivers get extra cash and other benefits in return for helping someone out.”
“Like the disruptive innovation Uber has brought to the transportation industry and Airbnb has brought to lodging, we see Roadie bringing a similar value to the shipper market,” said Warren Stephens, CEO, Stephens Inc.
“UPS continues to invest in innovation,” said Rimas Kapeskas, Managing Director of the UPS Strategic Enterprise Fund. “We believe that mobile and the sharing economy are active spaces, generating many creative and intriguing business models, like Roadie. Our Strategic Enterprise Fund is all about staying connected to evolving business models and new technologies.”
How it Works
Roadie is the first neighbor-to-neighbor shipping network. Senders post details and pictures of the items they want to send. Roadies respond based on location and timing with their availability to deliver.
The Roadie app enables efficient, low-cost delivery for senders and rewards drivers for trips they were already taking, offering members of the community a variety of benefits including free roadside assistance, roadside discounts, and tax write-offs on miles they were already driving.
Roadie and the Sharing Economy
Roadie is the newest entrant in the sharing economy, leveraging a collaborative model, which is now trusted by 68% of consumers worldwide, including more than half of all people in North America, according to a Nielsen survey. While disruption of industries such as transportation and lodging has been widely reported, a new model has yet to emerge to solve the challenges faced by the $90B shipping industry, which struggles to meet the growing consumer demand for same day, next day and out-of-the-box shipping options.
“There’s an invisible grid under all of our feet made up of the patterns and places we go every day, driving to work, on vacation and just running errands,” said Marc Gorlin, founder and CEO of Roadie. “We designed Roadie to tap into the excess capacity moving along that grid. There is a low cost for the sender, extra cash for the driver and the potential to make the world a better, greener, friendlier place,” said Gorlin, who also co-founded Kabbage Inc., Pretty Good Privacy (PGP) and VerticalOne Corporation.
Pricing and Availability
Roadie fees are calculated based on a combination of factors, including mileage and urgency, and range from $8 to $150. Pricing in the Roadie beta app is fixed, making payments easy and hassle-free, with no bidding, bartering or in-person exchange of cash.
The Roadie app is now available for download in the iTunes Store and on Google Play.
About Roadie Inc.
Roadie, headquartered in Atlanta, has created an app-based community that puts unused capacity in passenger vehicles to work by connecting people with stuff to send with drivers heading in the right direction. Roadie’s model enables efficient, low cost delivery for senders and rewards drivers for trips they were already taking. Roadie is backed by Warren Stephens of Stephens Inc.; the UPS Strategic Enterprise Fund; Eric Schmidt’s TomorrowVentures; Guggenheim Partners’ Executive Chairman Alan Schwartz, Square Co-founder Jim McKelvey; the Mellon Group; former CEO of ISS Tom Noonan, and H. Barton Asset Management, among others.
To learn more about the world’s first neighbor-to-neighbor shipping network, visit http://www.roadie.com