Logistics startup Flexe has raised a $70 million Series C round led by T. Rowe Price, with participation from existing backers Activate Capital, Tiger Global, Madrona Venture Group, Redpoint Ventures, and Prologis Ventures. The company operates an on-demand marketplace, which connects retailers in need of temporary space with warehouses that would have otherwise sat empty.
- Worth Noting: Instead of selling with Amazon’s fulfillment business, Flexe also offers retailers an alternative that lets them ship products with their own branded boxes and existing shopping software. The third-party warehouses, meanwhile, handle labor and administrative work, GeekWire noted.
- Be Smart: Competitors include industry giant XPO Logistics and Stord. UPS also launched its own warehouse tech startup called Ware2Go last year.
- Heard on the Street: Flexe CEO Karl Siebrecht: “We’re adding more capacity with partners in smaller cities and suburbs… In a world where two-day e-commerce fulfillment is standard, the most common distribution points are New Jersey, Indianapolis and Los Angeles. If you want one day, you need about 12 markets. The good news is, there are lots of warehouses in these locations, but many are not doing e-commerce fulfillment. We can give them the tools, technology and expertise to enable it for our customers.” [GeekWire+MCM]