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- A startup involved in 25% of US moves 🚚
A startup involved in 25% of US moves 🚚
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Finlay Williams
August 14, 2024
2 minute wacky businesses, you can tell your buddies about 🧠
Ever heard of Dolly? The startup that’s revolutionising the way you move stuff. With an estimated annual revenue of $40 million, Dolly is often described as the “Uber for moving.” Think of it as on-demand, hassle-free muscle for all things heavy. Oh, and it was founded by a former Microsoft employee, curious?
Source: Google Trends
Gig economies and a profitable foundation 🧐
Dolly was founded in 2014 by Mike Howell and Chad Wittman, two guys who realised moving sucks—so they fixed it. They saw a gap for on-demand moving services and built a platform that connects people needing help with “Helpers” who’ve got a truck and a strong back. Sounds simple, but the magic is in the execution.
Instead of building a massive fleet of trucks, Dolly piggybacks on the gig economy. It's lean, scalable, and profitable (no way!). They’ve got an asset-light model, unlike traditional moving companies that have tons of overhead, Dolly operates with minimal fixed costs. This allows them to scale rapidly without the financial drag of owning and maintaining a fleet of vehicles.
What are the nuggets? 💎
🚚 Origin: Mike Howell and Chad Wittman co-founded Dolly in 2014. Mike Howell, a former Microsoft employee, teamed up with Wittman, who had a background in product management. Thanks to early support from angel investors, they got the ball rolling without blowing through cash like a late-stage startup on a WeWork bender.
🚚 Pivotal Moment: In 2020 alone, Dolly forged partnerships with The Container Store, Costco, and Lowe's after raising a $7.5 million Series B round in 2019.
🚚 Competitive Landscape: Dolly isn’t alone in the moving and on-demand service space. Competitors like TaskRabbit, Bellhop, and Lugg offer similar services. Their strong emphasis on a seamless user experience and emotional connection with customers has allowed them to carve out a niche in the crowded market.
🚚 Big Moves: Dolly’s eyes are on expansion, and they’re dominating local markets before tackling a national rollout. Dolly is focusing on steady, sustainable growth rather than rapid, risky expansion.
🚚 Funding: With about $17.3 million raised to date, Dolly isn’t swimming in VC cash, but they don’t need to be. They’re running a lean operation with a positive outlook. The math adds up, less money burned means easier to sustain profitability.
🚚 Acquisition: Dolly's strong market presence and innovative approach caught the attention of Updater, a leading relocation technology company. In 2023, Updater acquired Dolly (for an undisclosed amount 🥲), bringing its expertise in on-demand moving into a broader world of relocation services.
🚚 Challenges Ahead: The gig economy model they rely on comes with risks, such as potential regulatory changes and the ongoing debate over gig worker classification. Additionally, competition in the space is fierce, and an economic downturn could impact the demand for moving services.
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