Key Takeaways
- Pipedream Labs secured $13 million in funding to enhance its underground delivery services, particularly the “Instant Pickup” system.
- The funding will also support the development of a middle-mile delivery network in an undisclosed city.
- The company has 100 preorders for its Instant Pickup system and plans to begin construction on the network this year, aiming for operational status by spring 2024.
Funding Announcement
Underground delivery startup Pipedream Labs has announced a successful funding round of $13 million, led by Starship Ventures with participation from Cortado Ventures, Myelin Ventures, and others. CEO Garrett McCurrach shared the news on LinkedIn, highlighting the strategic importance of this financial boost to the company’s growth.
Enhancements for Instant Pickup
The new capital will primarily enhance the company’s “Instant Pickup” service. This service is designed to streamline urban deliveries, allowing customers to receive their orders in under 15 seconds from retail locations such as grocery stores and restaurants. Pipedream reports having 100 preorders for its Instant Pickup systems, which likely includes a pilot program with Wendy’s announced last year.
Middle-Mile Network Plans
In addition to expanding the Instant Pickup service, Pipedream Labs plans to construct a large-scale middle-mile delivery network in a city that has yet to be named. Although McCurrach didn’t specify the city, he provided a graphic indicating a potential site in the Phoenix metro area for a “small middle-mile network.” The aim of this underground infrastructure is to improve the efficiency and cost-effectiveness of urban deliveries.
McCurrach stated the company’s intention to collaborate with local government to ensure the network benefits city residents. This construction is projected to commence within this year, with the goal of making the network operational by spring 2024.
Overall, the company is positioned to gain significant traction from its Instant Pickup business in the near term. With the growing trend of curbside pickup and the evolving landscape of quick-service restaurants, Pipedream’s innovative solutions align well with current market needs. As grocery stores and drive-thrus adapt to modern consumer demands, Pipedream’s technology could play a crucial role in shaping urban delivery systems in the future.
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