Doorman was a technology company that specialized in logistics services for urban areas. It was founded in 2017 by Zander Adell, who appeared on Shark Tank in August 2020, seeking an investment of $250,000 in exchange for a 10% stake in the company.
Doorman provided last-mile package delivery services, aiming to make deliveries easier and more efficient. Unfortunately, the company ran out of the market shortly after its appearance on Shark Tank, and as of August 2021, Zander is the Head of Development at Magnesium Film.
Despite its brief life, Doorman was a pioneering company that provided much-needed services to urban areas, and its failure is a testament to the difficulty of creating successful businesses in the modern age.
What Is Doorman?
Doorman is a firm that delivers orders 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.
Doorman was a privately owned American tech company specializing in logistic services for urban areas. Founded by Zander Adell in 2013, the company sought to improve the delivery industry by solving the problem of missed package deliveries.
Doorman operated through fulfillment centers and independent driver fleets in densely populated areas, allowing customers to receive packages at home in their preferred time.
The company initially raised $370,000 in its pre-seed round and delivered around 4000 packages in its first year. However, Doorman began to take off in 2015 and quickly became a popular service for online shoppers.
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 if they live nearby.
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 a 10% stake in Doorman|
|Final Deal||$250,000 For a 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. 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 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 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 Adell Shark Tank appeared on Shark Tank requesting an investment of $250,000 in exchange for a 10% stake in Doorman. When Zander Adell went in front of the sharks to make a pitch for his business Doorman, he had the backing of some impressive credentials.
Having worked at Pixar, the digital arts company behind films such as Wall-E and Toy Story 3, he had the technical knowledge to make his concept of an on-demand delivery service a reality.
His pitch outlined how customers could use their phones to arrange deliveries from the Doorman warehouse, with subscription options ranging from $3.99 for an individual package to $19 for a monthly subscription.
He also revealed that the company had achieved 300 subscribers and delivered over 4,000 packages in its first 8 months.
The Sharks were impressed, and Barbara Corcoran noted his trustworthiness. Robert Herjavec proposes an investment of $250,000 for a 20% stake in Doorman.
Zander counters Robert with $250,000 for a 12% stake in Doorman. Robert agrees, and they have a deal.
Ultimately, Robert Herjavec offered $250,000 for 12% equity in the business, and Zander accepted. Zander left the Shark Tank stage with an investment deal from Robert Herjavec for Doorman.
Final Deal: Robert Herjavec agreed to invest $250,000 for a 12% stake in Doorman.
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. 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 doorman website is still operational and does not mention 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.
Doorman Shark Tank Update
Zander said he wanted to bring in more sharks to close the deal but that his fortunes in the tank would suddenly change, and he would not close a deal.
He was excited to have Herjavec involved in this business and immensely enjoyed his time on Shark Tank. Zander and his business, Doorman, have grown exponentially since the episode aired in January 2015.
The company raised 1.5 million in August 2015 from seed funds. Then the next month, another 1.5 million was raised.
Zander announced that he plans to start operations in other cities, beginning with Chicago. Doorman reached a significant milestone in October 2015, and operations began in Windy City.
Since the company received $3 million from the new investor, it has grown so much that it can afford to add another branch in another city just one month later.
New Yorkers were impressed with the opening of the company’s New York City office. As a result, 8.4 million people from New York now have access to Doorman’s services in San Francisco and Chicago.
Like Uber, Doorman has exploded into cities worldwide, and as long as nothing too dramatic happens, Doorman will be bringing its services to a city near you soon.
But even if the company grows by 300% yearly, it will never cause major issues like Uber. In Shark Tank, if a fight did arise between two sharks, it would be too soon.
Doorman went out of business in 2017 and did not operate at any location as of 2023.
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. Doorman transports items 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.
After appearing on Shark Tank, Doorman raised $1.5 million from seed funding and expanded into new cities. However, the business could not keep up with the demand for its services and eventually had to increase its subscription prices, causing customers to stop using the service.
In 2017, Doorman announced they would no longer accept incoming shipments and would join forces with a larger team. It was never revealed who they joined forces with, but their website eventually went down.
What Is the Net Worth of Doorman?
The valuation of Doorman was $2.5 million when it appeared on Shark Tank. The net worth of Doorman is unavailable as of 2023 since the company went out of business.