'Tiny Warehouses': The Answer to Last-Mile Distribution In Big Cities
Bond, a property technology firm that focuses on last-mile delivery, is taking a page out of the book of co-working firm WeWork. The New York City-based start-up scouts out underutilized commercial space in dense city areas to establish “tiny warehouses” for last-mile delivery and is plotting an expansion in New York and two Northeast cities.
NEW YORK CITY - Bond, an e-commerce technology firm that focuses on last-mile delivery, is taking a page out of the book of co-working firm WeWork. The New York City-based start-up scouts out underutilized commercial space in dense city areas to establish “tiny warehouses” for last-mile delivery and is plotting an expansion in New York and two Northeast cities.
Recently, Bond raised $15 million in a funding round to complete its technology infrastructure for the launch of three mobile applications to support the new service targeted toward online retailers, open “tiny warehouses,” which the company calls Nano Distribution Centers and to expand to two additional cities. Bond plans to open six more NDCs in the New York metro area by March, as well as dozens more throughout the year as it expands into two additional cities by the third quarter of 2020.
“The round will enable Bond to help online retailers deliver products – and accept returns – faster and with an enhanced positive experience, starting in New York, where it is opening a number of NDCs,” Michael Osadon, Bond co-founder and chief revenue officer, tells GlobeSt.com. “The number of locations depends on the coverage and density that each NDC will handle and support in the most efficient way. In order to warrant opening up a new NDC, we must be able to monetize the space and have enough delivery demand.”
Bond defines its mini-warehouses as typically between 600 and 1,000 square feet, on a ground floor with a storefront and accessible for bikes local delivery crews, such as electric tikes. Brands pay Bond for storage, pick-and-pack services, and deliveries to Manhattan and Brooklyn. The price range is between $8 and $12 per item, depending on the weight and number of delivery windows needed. For the storage of retail products, the price depends on the number of pallets and frequency of use.
“In order to become the post-purchase market leader, and to make a significant impact on worldwide retail, we maintain cost efficiency and still progress very fast,” Osadon said. “The number of locations depends on the coverage and density that each NDC will handle and support in the most efficient way.”