A Wharton MBA and an entrepreneur in the technology sector, Zander Adell pitches Doorman, a scheduled package delivery service, in Shark Tank episode 611.
Doorman addresses a concern that online shopping has exacerbated: delivering things when someone is at home.
If you order online these days, it will be delivered throughout the day – most likely while at work.
Your delivery will be delivered to your front steps or porch if you live in the suburbs.
You will receive one of those slips if you live in a city and there is no doorman to pick up parcels.
Doorman eliminates the need to retrieve packages or, even worse, the problem of stolen packages.
When you order something online through Doorman, you provide your Doorman address, and the delivery is sent to that address.
The doorman will deliver your order on your schedule between 6 AM and 12 AM based on your select time.
There is a simple pricing structure: $3.99 for a single shipment, $19.99 for an unlimited-delivery silver package, and $29.99 for an unlimited-delivery gold package.
San Francisco residents can now take advantage of this program targeting urban residents. Adell planned to expand the program to New York and Chicago in 2015.
The doorman is possibly in need of a Shark to assist in growth. Will a Shark invest in Doorman?
What Is Doorman?
Doorman delivers packages ordered online during convenient hours and prevents packages from being stolen from doorsteps.
Doorman is an app-based company that operates primarily through mobile applications for iPhones and Androids.
Customers can have their e-commerce shopping packages delivered to a Doorman warehouse rather than their home address via any shipping carrier.
When the delivery is ready, they can choose an appropriate delivery time through Doorman or pick it up themselves if they live close by.
Standard shipping methods used by e-commerce businesses are inherently unreliable. They require separate tracking apps from UPS and FedEx so deliveries aren’t left unattended on your doorstep, where they can be stolen.
|Business||Package delivery service scheduled for the last mile|
|Investment Seeking||$250,000 For 10% stake in Doorman|
|Final Deal||$250,000 For 12% stake in Doorman|
|Episode||Episode 13 Season 6|
|Business Status||Out Of Business|
Who Is The Founder Of Doorman?
Zander Adell is the founder and the current CEO of Doorman, which was established in 2011. He worked on films such as Toy Story 3 and Wall-E as a technical director at Pixar.
He founded a new app called Garden in 2017 after shutting down Doorman. You can create reminders for your contacts using push notifications.
You can set timeframes (weekly, monthly) for how frequently you wish to communicate with friends and family.
You can keep track of birthdays, the last time you spoke, and the last time you saw each other physically.
Doorman Before Shark Tank
The idea for the service came to Zander after missing a box delivery at his house and being inspired by Uber and other dot-com breakthroughs.
Why can’t it be like Uber, where you can order, track, and have it come at a convenient time when you’re home?” he asked.
Thus, he began developing an app in 2014 and finished it with a beta version in 2015.
Alex, who operated primarily from San Francisco and invested $50,000 of his own money, acquired approximately 300 customers and delivered 4000 items in eight months.
All of his delivery drivers drove their vehicles, and he had only one overhead cost: the warehouse.
Alex saw enormous potential for growth in light of the popularity of convenience-based apps and the advent of e-commerce.
He began looking for investors to help him establish warehouses across the country.
How Was The Shark Tank Pitch Of Doorman?
Zander enters the Shark Tank show seeking an investment of $250K in exchange for a 10% stake in Doorman.
The questions follow the description of the pain issues and the company model. Robert inquires about the price.
The platform only launched a few months ago but has already attracted 300 customers.
Kevin believes FedEx and UPS would be able to provide this service. Shoppers may click on buttons to enable this option on retail sites, according to Zander.
Lori is intrigued by the concept, but she also has a doorman and is curious about how he will scale it. Robert inquires about the cost of customer acquisition; Zander responds that it is $37.
Lori becomes pleased when he mentions Chicago as the next city. Barbara offers that all of the Sharks participate in the $250K for a 20% stake in Doorman; Robert Lori and Barbara agree.
Zander counters $250K for 12%, and Robert states that he will handle it independently. Barbara is out until the humidity is less than 20%.
Lori responds with $250K for a 15% stake in her and Lori. Zander strikes a deal with Robert for $250K plus a 12% commission.
Final Deal: An investment of $250K for a 12% stake in Doorman by Robert Herjavec.
What Happened To Doorman After Shark Tank?
The three-million-dollar seed investment enabled Adell to grow Doorman’s business and offer one-hour window shipping in Chicago and New York eight months after the Shark Tank episode.
Doorman charges a la carte ($5 per visit + $2 per package) and monthly subscriptions ranging from $29 to $89 per month.
Doorman halted operations on October 6th, 2017, according to an article on TechCrunch.
They sent out a letter announcing their intention to join forces with a larger team but received no response as to what that meant.
The website is still operational and makes no mention of being shut down. The Doorman application is still available for download from the iTunes store.
The company raised another one and a half million dollars after appearing on Shark Tank, expanding into Chicago and New York City.
How Does Doorman Make Money?
A smartphone app is used for most business transactions.
A subscriber can choose a monthly delivery cost of 19.99* with a predetermined amount of packages to drop off or pay $3.99* per package delivery.
The items are then transported by subcontractors using their vehicles.
Is Doorman Still In Business?
The Doorman company attracted investors and operated from San Francisco to Chicago and New York for a few years.
Doorman ceased operations in January 2017 due to financial difficulties.