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Tuesday, Jul 23, 2024

Company Makes Heavy Lifting Look Easy

San Diego-based GoShare, a delivery on-demand company that helps businesses move furniture, saw a steep decline in its business due to coronavirus but has now rallied back to all-time highs. In five years, the company has served over 50,000 customers through its platform.

The company, which has raised $5 million in funding from investors, started as a business-to-consumer and shortly pivoted to a business-to-business model a few months after launch in 2015.

Founded in 2014, by founder and Chief Executive Officer, Shaun Savage said GoShare was born out of frustration after purchasing a TV at a department store and having to rent a truck to get it home. As a result, Savage and a partner created a mobile app that links truck and van drivers to people who need their help.

GoShare’s clients include retailers, industrial suppliers and eCommerce sites that find traditional delivery service too expensive or hard to manage. Others are consumers, like Savage, who need assistance moving a particular thing.

Notable retail partners include Costco, HomeGoods, Dixieline, Salvation Army, and ACE Hardware. To date, the app has expanded to over 1650 cities in 31 major metropolitan areas and has 16 local staffers.

Diversified Clientele

Despite retail delivery coming to a complete halt, other segments saw a steady increase as businesses turned to better resources and tools. During the coronavirus slowdown, GoShare transported everything from industrial supply to medical supplies.

“We were able to diversify our client base pretty quickly and we started working with some different customer segments that we hadn’t worked with in the past,” said Savage. “Our most important thing was trying to survive. In the last two months we have been in a scrappy mode. It’s a trying time for everybody.”

Although, in the past seven weeks business has been on the rise, seeing a quick recovery from an economic standpoint, he said. To date, GoShare helps more than 600 businesses including three Fortune 500 companies.

Businesses partner with GoShare for its expertise, experience, customer service and technology.

More than a moving service, GoShare drivers also have moved items for customers cleaning storage facilities, hauling, industrial equipment or pallets, making donations to Goodwill, last-minute deliveries to warehouses and even pickups from Home Depot or Lowe’s for construction supplies.

The Business Model

You have to be athletic and strong to make a living with GoShare. But if you can lift up to 75 pounds it can make a good side hustle, according to Savage.

An average order is $100 and GoShare drivers keep most of the profit. The highest pay goes to drivers with box trucks or cargo vans, the net cost of operating your vehicle works out to $10 an hour. Helpers, who use their vehicles for courier runs and assisting truck owners with heavy deliveries, earn upward of $33 per hour.

Comparatively, U-Haul gives rates on its website of $19.95 plus 59 cents a mile for a truck or van and $19.95 plus 79 cents a mile for a 10-foot truck.

On the consumer side, roughly 35 percent of its business comes from individuals who are in need of a truck or van. Revenue numbers were not disclosed because of the competition in the market.

“It’s a hyper competitive market,” said Savage. “Over the years, we’re constantly trying to out innovate the legacy players but also we have to watch out to see if any new players are coming into the space. It’s quite fragmented.”

AB5 Regulations

One of the biggest challenges the company had to overcome was the state’s AB5 regulation laws which took effect in January of this year. GoShare completely revamped its apps and system to accommodate, fortunately, they were one of a few to have found a way to be compliant with the regulation.

An expensive barrier to entry, GoShare’s competitive advantage is its ability to acquire both supply and demand. Looking to become a market leader in its category, their app is now available in 31, major metropolitan service areas across the U.S. and 16 cities in total.

Moving forward, it plans to expand both nationally and internationally including North America, South America, as well as other markets.

Thinking long-term Savage said he believes that autonomous vehicles will play a major role in the distant future. GoShare may also develop solutions for fleet owners leveraging their previous development based on their own large database of drivers and customers.

“The transportation logistics industry has been around for generations and will continue to be around,” said Savage. “We think we’re at the forefront of the latest technologies and innovations when it comes to delivery. We will continue to adapt in the future to meet the demand.”


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