A good idea for a start-up is one that caters to a real need. That is exactly what Flexe did.
Based in Seattle, this start-up aims to offer online merchants something that allows them to compete with Amazon’s speedy delivery: overnight ground delivery to nearly anyone in the country.
What is most impressive about Flexe? In less than 5 years, it has managed to establish a marketplace of spare storage space in 550 warehouses, which provides superior geographic coverage than Amazon’s delivery network, which took the international online retailer decades and billion to build.
Flexe, however, has accomplished this amazing feat without spending a dime. This is done by allowing merchants to book storage space through a simple-to-navigate website, which makes Flexe the Airbnb of warehousing.
This innovation comes at a perfect time because online retailers and merchants are looking for new ways to reach customers quickly enough to be competitive with Amazon’s speed.
“You can get goods to your customers as fast or faster than you can through Amazon Prime at a competitive price and it’ll show up in your own branded box rather than an Amazon box,” says Flexe co-founder Karl Siebrecht. “That is very important for companies looking to build brands.”
Flexe’s idea is also a great one because, until now, the majority of warehouse owners demanded a five-year lease, and offered spaces that were either way too big or would soon be way too small for a growing business. Flexe’s success lies in the fact that it offers something that is just right.
Of course, Flexe will have to prove itself at peak times, such as holiday season, and will have to continue to work on its credibility. For now, however, their revenues are booming due to a much-needed innovation.