Austin courier service Dropoff has collected $8.5 million to speed its entrance into new cities and ramp up hiring, the company said Monday.
Dropoff, which launched in 2014, offers same-day delivery services for businesses using online tools for ordering and tracking.
This month, the company broke into San Diego, Fort Worth and Nashville, bringing the number of U.S. cities it serves to 15.
The new money will be used to ultimately expand to 50 markets, and additional markets and regional offices will be announced soon, the company said.
The lead investor in the deal was Fulcrum Equity Partners in Atlanta. Other participants included Greycroft Partners and Correlation Ventures.
The company has raised a total of $15.5 million since inception.
“We are delighted to announce this milestone, which has put us on track to scale our innovative, same-day delivery solution at an exciting pace,” Sean Spector, Dropoff CEO, said in a written statement. “Expectations have evolved, prompting more businesses to turn to same-day delivery to solve last mile challenges and satisfy their customers. This is helping to fuel our growth.”
Spector previously founded GameFly, a California-based online video game rental subscription service. Before that, he was an agent for Los Angeles-based Creative Artists Agency.
Dropoff has 65 full-time employees, including 40 in Austin. Plans call for increasing the Austin-based headquarters by more than 50 percent in the next 18 months, the company says.
Dropoff is targeting food and grocery, health care, retail and e-commerce companies. Customers include Whole Foods stores, Neiman Marcus, JW Marriott, Airbnb and Sprinkles, the Los Angeles-based cupcake chain.
The company’s couriers, who are contract workers, make deliveries by bike, car, SUV or van. They also go beyond traditional courier services, from setting up catering for Whole Foods to delivering medical supplies for a national client. (Drivers for that job are trained in HIPAA compliance, the company says.)
The company got attention at the 2016 South by Southwest by delivering bags of brisket from Micklethwait Craft Meats in East Austin to then-First Lady Michelle Obama’s plane on the tarmac at Austin-Bergstrom International Airport.
“Technology is creating a new standard in same-day delivery, and Dropoff is leading the way with a robust, proprietary platform,” said James Douglass, partner at Fulcrum Equity Partners. “We’re excited to watch their vision and leadership reshape the logistics industry.”
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