US start-up Flexe is revolutionising the way merchants secure storage, using an Airbnb-style model of allocating under-utilised warehouse space, as first reported by Bloomberg.
In less than five years, the Seattle company has established a network – or marketplace – of 550 warehouses, without spending any money on facilities. What’s more, its recently launched overnight US-wide delivery service is better than even Amazon can offer.
Flexe currently has 2.3 million square metres of storage, approximately one quarter of Amazon’s capacity, and the company expects to add a further 930,000 square metres this year.
Flexe has been designed for start-ups that do not know their capacity needs for the future; previously they were obligated to lock themselves into long-term contracts that may prove to be insufficient or overly ambitious for their future needs.
Flexe’s founders decided to tap into underutilised warehouse space, renting it out in the same way that homeowners lease their properties for short periods. The company approached large companies with space booked year-round about using their underutilised space when busy season – be it summer, Halloween, Christmas or Valentine’s Day – has ended.
They then launched ‘overflow’ services, for retailers and wholesalers needing to store pallets of inventory for short periods, later adding online order fulfilment, enabling warehouse operators to charge more to pack and ship orders directly, by truck rather than plane due to the coverage provided by the network of warehouses.
Flexe is proving popular with online brands in the US such as mattress seller Casper as customers can order through the merchant’s own website.