Dropoff, an on-demand delivery service, has raised $7 million in new funding to be the logistics provider for businesses of all kinds.Greycroft led the Series A round, with participation from new and existing investors including Correlation Ventures, Texas Atlantic Capital, and Wild Basin Investments.
Dropoff launched in Austin in November of last year, and expanded to Houston in January. Since then, they’ve completed tens of thousands of deliveries for hundreds of customers. Founder Sean Spector tells me the funding will go toward opening up new cities, beginning with Dallas and San Antonio.
While startups like Postmates and TaskRabbit are competing for a share of the crowded consumer delivery market, Dropoff is focused exclusively on B2B delivery.
“This isn’t just pick-up and delivery, this is logistics,” says Spector. “There are delivery windows, timing of pickups, proof of delivery signatures required… these are very different challenges than B2C delivery.”
The items delivered range from legal documents to weekly groceries for startup offices. Spector says one of their largest customers is CVS, which uses Dropoff to deliver medicine and medical supplies across Texas.
“Right now there’s a hole in the market, there really is no national same-day business delivery provider,” Spector says. “That’s what we want to be.”