Doorman Shark Tank Update
From Innovation to Evolution: The Story of Doorman in Urban Logistics
Doorman was a technology company focused on logistics services for urban areas. The company aimed to simplify last-mile package delivery, making it more efficient and convenient.
Doorman is an app-based service that allows users to schedule deliveries during convenient hours, preventing packages from being stolen off doorsteps.
The company operates through mobile applications for both iPhone and Android users. Originally founded in 2013, Doorman sought to address the issue of missed package deliveries.
Doorman operates through fulfillment centers and independent driver fleets in densely populated areas, allowing customers to receive packages at their preferred times.
By 2015, Doorman had gained popularity among online shoppers. The company initially raised $370,000 in its pre-seed round and delivered around 4,000 packages in its first year.
Customers could have their e-commerce packages delivered to a Doorman warehouse and then choose a convenient delivery time or pick them up if they lived nearby.
The traditional shipping method often left packages unattended, putting them at risk of theft. Doorman aimed to solve this problem by offering a more reliable delivery option.
Zander Adell, the founder and CEO of Doorman, had previously worked as a technical director at Pixar on films like Toy Story 3 and Wall-E.
After shutting down Doorman, he launched a new app called Garden in 2017, which helps users set reminders to keep in touch with friends and family.
Doorman’s brief existence highlighted the challenges of building successful businesses in today’s competitive environment.
Adell came up with the idea for Doorman after he missed a package delivery at home. Inspired by services like Uber, he wondered why package delivery couldn’t be more convenient. He began developing the app in 2014 and launched a beta version in 2015.
Operating primarily from San Francisco, Adell invested $50,000 of his own money, gained approximately 300 customers, and delivered 4,000 items in eight months.
All delivery drivers used their vehicles, and the only significant overhead cost was the warehouse.
Adell saw significant growth potential due to the popularity of convenience-based apps and the rise of e-commerce.
He sought investors to help expand the service across the country and applied for Shark Tank.
Doorman Shark Tank Pitch
Zander Adell appeared on Shark Tank seeking $250,000 for a 10% stake in his company, Doorman.
With an impressive background at Pixar, known for movies like Wall-E and Toy Story 3, Zander had the technical expertise to bring his on-demand delivery service to life.
He explained how customers could use their phones to schedule deliveries from the Doorman warehouse.
Doorman subscription options ranged from $3.99 for a single package to $19 for a monthly plan.
He also highlighted that the company had gained 300 subscribers and delivered over 4,000 packages in its first eight months.
The Sharks were impressed, with Barbara Corcoran commenting on his reliability. Robert Herjavec offered $250,000 for a 20% stake in Doorman. Zander countered with $250,000 for a 12% stake, and Robert agreed.
In the end, Zander secured an investment deal from Robert Herjavec for $250,000 in exchange for 12% equity in Doorman.
Final Deal: An investment of $250,000 for a 12% stake in Doorman by Robert Herjavec.
Doorman After Shark Tank: From Shark Tank Success to Business Closure
Immediately following its appearance on Shark Tank, the company raised $1.5 million in seed funds, followed by another $1.5 million the following month.
Zander announced plans to expand into other cities, starting with Chicago. The $3 million seed investment allowed Adell to expand Doorman’s business, offering one-hour window shipping in Chicago and New York just eight months after their appearance on Shark Tank.
New Yorkers welcomed the opening of Doorman’s New York City office, giving 8.4 million residents access to their services, which were already available in San Francisco and Chicago.
Since the episode aired in January 2015, Doorman and Zander have seen significant growth.
Zander expressed his desire to involve more investors, though he ultimately did not secure a deal. He valued his experience with Herjavec and enjoyed his time on the show.
Despite announcing their intention to merge with a larger team, no further details were provided.
Doorman’s pricing model included a la carte charges ($5 per visit + $2 per package) and monthly subscriptions ranging from $29 to $89.
Much like Uber, Doorman quickly expanded into various cities, and unless significant issues arose, they planned to bring their services to more locations soon. However, Doorman ceased operations on October 6, 2017, as reported by TechCrunch.
However, despite their growth, Doorman went out of business in 2017 and ceased operations.
The Doorman website remains active, and the application is still available for download on the iTunes store till 2017.
Doorman was valued at $2.5 million when it appeared on Shark Tank. Doorman’s net worth has decreased to 0 since it went out of business.
