Last-mile delivery startup Fetch Package Inc. has raised $18 million in venture capital for its door-to-door delivery network focused on the fast growth of packages to multifamily properties such as apartment buildings, the firm said today.
The “series B” round of funding was led by Iron Gate Capital and Pando Ventures, and joined by existing investors Signal Peak Ventures, Silverton Partners, Seamless, and Venn Ventures. The move follows $10.5 million in “series A” funding, bringing the company's total funding to more than $32 million.
Austin, Texas-based Fetch says its package volume per apartment home has increased by 59% since the emergence of the Covid-19 pandemic. As online purchasing climbs and apartment communities continue to limit the on-site presence of building managers, more and more multifamily owners and operators are turning to Fetch to relieve the crush of package deliveries, the firm says.
In response, Fetch plans to use its new funding to reach into new markets, add new clients, and expand with current clients, as well as invest further in its warehouse strategy and delivery technology. The company now operates in Dallas, Fort Worth, Houston, Austin, San Antonio, Seattle, Denver, Atlanta, Orlando, Tampa, Chicago, Phoenix, Charlotte, Washington, D.C., and Portland, Oregon.
The firm’s system works by accepting deliveries at its network of local facilities and working directly with residents to schedule door-to-door delivery. That approach provides a scalable solution for apartment owners and managers struggling to deal with the exponential growth of resident deliveries, Fetch says.
“Since its launch in 2016, Fetch has grown at an impressive rate. The team’s ability to meet the new levels of demand we’ve seen during the pandemic and economic downturn has been phenomenal,” said Iron Gate Partner AJ Dye, who will join Fetch’s board of directors as part of the latest financing round. “Fetch is the enduring package solution that provides answers to the package volume challenges faced by multifamily operators.”
The new funding comes as retailers are increasingly turning away from the major package carriers—UPS Inc., U.S. Postal Service, and FedEx Corp.—and looking to alternative providers like DHL or regional carriers like LaserShip, OnTrac, Canada Post, and Purolator, according to statistics from logistics technology firm Convey Inc. Reasons for the trend include performance problems, climbing costs, and capacity limits at the traditional carriers, Convey said in its latest monthly performance index tracking the delivery sector during the pandemic.
"Another milestone for the Fetch Package family! Our team's dedication and hard work throughout 2020 has been nothing short of amazing. Onward!" - Michael Patton, Founder/CEOhttps://t.co/kLsIQwFKLm https://t.co/zh0shLVQ0Y— Fetch (@fetchpackage) August 18, 2020