The realm of the startup never ceases to amaze. The kinds of innovation to be found can come from the least expected angles. What might be thought of as a complete, if inefficient industry, can quickly have a game changer dropped into the mix. Take Shyp for example. A startup based around shipping packages. According to the website, they’re “the easiest way to ship anything.”
It works almost like the USPS or any other commercial shipping service with one major exception, no lines. Currently, if you live in New York, San Diego, or Miami, you download the Shyp app, snap a photo of your item, and then request a pickup. They’ll have a guy or gal come to your door and take the package off your hands for $5. That’s right, just $5. Then, said person, aptly called a “Shyp Hero”, will search for the best possible place to ship your item at the lowest price. Then all you have to do is pay for shipping. In essence, you simply hire someone to go through all of the hassles of shipping a package for you.
The men behind this startup are Kevin Gibbon and Joshua Scott who launched Shyp in July of 2013. Originally out of San Francisco the company has been able to bank an astounding $12.1 million in investment capital, with their Series A closing at $10 million on July 16, 2014.
The company is currently looking at expanding to the Los Angeles area and it is only a question of how long it will take for it to catch on across the nation. In this case the startup doesn’t have to worry about encroaching on the ground of major franchises like UPS or FedEx. Something other new ventures, namely Uber, have had a hard time with in the past. As it is, these services that are still used by the person looking to send the package, the Shyp Hero is simply a third party proxy.
If the amount of the initial investment is any indication, a grand expansion is sure in Shyp’s future. It can be expected that the first places to see this expansion will be major cities. With a higher population the startup will have access to a broader market, making the potential for profit that much larger. Another thing to consider is the sheer convenience of such a service. With such a fast paced life in the first world, standing in long lines is already causing a loss in time spent in other endeavors.
Still, handling packages comes with risk. What will Shyp do if and when people’s parcels disappear? Will there be an option for some kind of loss insurance, as we see with UPS or FedEx? Keep an eye on this logistics upstart to find out.