When it comes to getting warehouse space in the U.S., it's often found that there isn't much flexibility available.
A great deal of warehouses traditionally require you to sign a contract with them for an extended period of time if you are interested in using their space. For some company owners, they have quite a difficult time finding space if they only need it for a short period of time.
And for those who do own a warehouse space, quite frequently they only use it for certain months out of the year, while other months they might experience a slow period and have extra space available that could be rented.
So there is a market for those who have extra warehouse space to be linked-up with those who require it only for a short amount of time.
In comes Flexe.
Flexe is a Seattle-based startup that offers customers the chance to book storage space via their easy-to-use website.
You can think of it as the Airbnb of warehouses. It's an on-demand warehouse and fulfillment solution that makes its money by taking a commission for each transaction that gets made, just like Airbnb or Uber.
Flexe is now looking to provide online merchants overnight ground delivery.
This is because they have managed to establish a network of marketplace storage that includes roughly 550 warehouses across the country right now.
It's said that their geographic coverage is better than Amazon's and Flexe didn't need to spend any funds on buying facilities. Yet, they have about 25 million square feet of storage space that's available to be used and rented.
Using the Flexe method is said to be far cheaper and faster than opting to go through Amazon, so it's no wonder that they are seeing tremendous success.
Another interesting feature of Flexe, is that when those deliveries are made, they are sent in their own branded box; unlike Amazon deliveries.
And for companies that are looking to build their brand this is a valuable feature.
To date, the company is said to have raised about $20.8 million and allegedly their sales for 2016 grew about 400 percent. Flexe is utilizing available an unused space that is often unused for months at a time, and it's usually tied up in long-term contracts. This sort of business really is a game-changer in the warehouse space, it's a brilliant way to try and connect those with the extra space with those who are looking for some.
The CEO of Flexe, Karl Siebrecht, says that the old way we built supply chains is no longer sufficient, and he sees Flexe as being the one to provide a dynamic warehousing solution; contributing to a new era in supply chain and logistics.
Pics:
Pixabay
Flexe
ClipartNet
Sources:
http://www.business-standard.com/article/international/this-start-up-is-the-airbnb-of-warehouses-and-has-amazon-in-its-sights-117051400007_1.html
http://economictimes.indiatimes.com/small-biz/startups/this-startup-is-the-airbnb-of-warehouses-and-has-amazon-in-its-sights/articleshow/58656483.cms