When it comes to optimizing last-mile delivery, attention is mostly focused on maximizing delivery driver hours and end consumer satisfaction.
What many do not consider is the staff and infrastructure needed to facilitate these deliveries at the 21.9 million apartment units across the United States, with close to 50% of those apartments being occupied by two or more consumers, according to the National Multifamily Housing Council.
During the pandemic, these residential facilities saw occupants’ monthly deliveries increase from an average of six packages a month to 10, with an increase to 14 during the holiday season, leading to a need for larger package rooms and more on-site staff to accept these deliveries.
As e-commerce continues to boom, Fetch Package has created a last-mile logistics solution to optimize multifamily housing deliveries, eliminating the need for expanded package rooms or lockers and increased staff to handle incoming traffic.
After creating efficiencies for more than 700 communities and on its way to deliver 8 million packages by the end of 2021, Fetch announced Wednesday that it has closed on a $50 million Series C equity round led by Ocelot Capital.
Greenpoint Partners, Alpaca VC, Iron Gate Capital, Signal Peak Ventures, Venn Ventures, Pando Ventures and Seamless also participated in the round, as did Signature Bank, which provided a $10 million venture debt facility.
Rose Park Advisors, known for its deep investment in South Korean e-commerce company Coupang, also participated in the round. Fetch announced that previous Coupang board member Matt Christensen will be joining its board of directors as an observer.
“Fetch is the last-mile delivery solution that the apartment industry has always needed,” said Andrew Townsend, a managing member at Ocelot Capital and owner of Austin, Texas-based parcel carrier Lone Star Overnight, in the release.
“Based on our experience within parcel logistics and last-mile delivery, we view the Fetch model as the only sustainable option for multifamily and see it quickly becoming the gold standard for apartment operators. With the acceleration in e-commerce volumes, it is more apparent than ever that limited-capacity parcel storage systems are no longer viable and Fetch is the only long-term parcel storage solution that meets the needs of both multifamily operators and residents.”
Since not all multifamily communities offer the same delivery hours and standards, Fetch empowers the consumer with its own network of warehouses to accommodate their delivery needs. After an online purchase, a registered Fetch user enters his or her personalized code and shipping address, and once that package is delivered to the Fetch warehouse, the user is notified and asked to select the delivery day and time frame that works best.
This service is offered for all types of goods, including perishables and oversized packages.
After piloting the service with rental housing development company Greystar, Fetch was able to deliver more than 11,000 packages to its 490-unit apartment building in Dallas with a 99.2% on-time delivery rate since 2017, with an additional savings of 1,420 hours of staff time usually needed to facilitate that volume.
“Just achieving one of those metrics alone would make it compelling. All three together mean it’s an easy decision [to implement],” said Toni Reeves, the executive director of Greystar, to the National Apartment Association on the pilot.
Serving more than 180,000 units in 16 major cities across the country, the company plans to use the new funds to open in 24 more markets over the next two years, as well as expand to new unit locations in the current markets it is serving.
“We’ve proven our profitability in a number of markets and we’re aiming to triple our business in the next 18 months with that continued success and profitability top of mind,” said Fetch CEO Michael Patton, who recently announced it has tripled its year-over-year annual recurring revenue in 2020.
“We’re excited about what this fundraise means for our company in terms of our ability to extend our package management solution to more cities, more apartment communities and more renters across the country. The industry has recognized Fetch as the one package model capable of carrying multifamily into the future, and we’re honored that our investors feel the same.”
Funding details: Fetch Package
$50 million in equity, $10 million in debt
Ocelot Capital, Signature Bank (debt)
Greenpoint Partners, Alpaca VC, Rose Park Advisors, Iron Gate Capital, Signal Peak Ventures, Venn Ventures, Pando Ventures, Seamless
Business goals for the round
Add housing communities in current markets and expand to 24 new major markets