Plano-based Pickup, an on-demand delivery service in 75 cities that works with retailers, has received $15 million in venture capital money to expand into more markets.
CEO and founder Brenda Stoner said its future expansion will also require more corporate staff across the business in sales and marketing, technology, operations, human resources and accounting.
She plans to double Pickup’s corporate staff of 100, most of them locally, but some jobs may be remote.
Pickup, founded five years ago as a consumer app-based delivery service, has evolved its business by helping retailers such as Big Lots, buybuyBaby and At Home get big and heavy items delivered to its customers.
Demand for online shopping during the pandemic led to a doubling of Pickup’s revenue last year, Stoner said. She declined to give financials but said the pace of revenue growth has accelerated this year.
“We can delivery everything from a candy bar to a couch,” Stoner said. She called her company’s service better than Amazon.
Pickup operates through thousands of independent contractors that it calls its “Good Guys” who drive pickups and can deliver and assemble big and heavy goods. Many are first responders, and all are thoroughly vetted, she said. Pickup also partners with Postmates for smaller deliveries.
“A sofa or a refrigerator is a high-margin, high-value item that consumers don’t want to deal with getting home,” she said.
More retailers want to offer same-day delivery, she said. Pickup has about 30 national contracts now, and one of them, Plano-based At Home, has been opening stores in new markets and Pickup has been following it.
The company still works directly with consumers who might need a piece delivered from their grandmother’s attic or an estate sale, but the focus has been to work directly with retailers, Stoner said. Pickup has also hired more delivery teams of two to handle heavier items.
The Series B round of funding was led by NewRoad Capital Partners, based in Rogers, Ark., with participation from existing investors TDF Ventures, Noro-Moseley Partners and Florida Funders. Other investors in this round include Autotech Ventures and the New York Angels.
The new money brings Pickup’s total raised to date to about $30 million, Stoner said.
Tracy Black, operating partner at NewRoad Capital, is joining Pickup’s board and said she will leverage her industry and technology background to work with the Pickup team to accelerate its growth.
Black is a former top executive at J.B. Hunt Transport Services and has 30 years of experience in supply chain technology.
Looking for more retail coverage? Click here to read all retail news and updates. Click here to subscribe to D-FW Retail and more newsletters from The Dallas Morning News.