Returnmates Rebrands to Sway and Raises a $19.5M Series A to Build a Customer-Centric Delivery and Returns Platform
LOS ANGELES, CA / ACCESSWIRE / January 11, 2024 / Sway, formerly Returnmates, is a Los Angeles, CA-based technology company enabling a customer-centric delivery and return experience. The company rebranded to Sway, a name representative of the multi-directional services offered to retailers, expanding beyond returns to incorporate last-mile delivery. Sway recently announced a $19.5 million Series A led by 7GC. Additional participants include Blackhorn Ventures, Lightshed Ventures, Rise of the Rest Revolution, and more. The funding will be used to grow the team, expand coverage from 20 to 25 cities, and enhance the technology to provide additional value for both brand partners and consumers.
A Solution Built for Today's Customers
Sway's Co-Founder and CEO, Eric Wimer, was an early Uber employee who scaled their rideshare and UberEATS product into +25 markets across the U.S. After a horrible trip to the post office back in the summer of 2020, Wimer and Co-Founder Kristian Zak saw an opportunity to leverage the same type of network to enhance the package delivery and returns experience.
While most legacy logistics companies were built prior to the acceleration of e-commerce, Sway is purpose-built to serve the needs and expectations of today's brands and shoppers. With next-day and two-day delivery services coupled with a revolutionary doorstep return and exchange product, brands are able to build stronger, lasting relationships with their customers. Sway's technology provides two-way SMS support and visibility - analogous to rideshare or food delivery - enabling an on-time performance of +99% and a shopper NPS of 75.
Transforming The Retailer-Customer Relationship
The company has grown its brand partners significantly, working with leading apparel and marketplace companies. Overall, brands have seen a 66% reduction in lost package rates and a 20% increase in repeat purchases compared to legacy carriers.
Doorstep returns and exchanges, a key differentiator for Sway, target a problem that brands have historically viewed as a cost center. Returns handled through the Sway network are consolidated and shipped back quickly, thus reducing per-unit costs by 15% and shortening cycle times from 7 to < 3 days.
Sway also provides a powerful earning opportunity for driver partners through a technology-enabled gig marketplace. Transparent earnings and the ease of moving packages vs. people have created an additional place for workers to supplement their income.
"Consumers don't choose to shop at brands because UPS, FedEx or USPS drop off the package," said Co-Founder & CEO Eric Wimer. "Up until today, delivery and return services have been treated like a commodity. With Sway, we become an extension of the brand's experience. When you maintain an open channel with the shopper, deliver their package seamlessly, and pick up their return if it doesn't work out, you redefine the shopper's relationship with the brand."
"Sway is fixing the decades-old returns problem in eCommerce for merchants and customers with a business model that actually makes sense. Merchants reduce leakage, and customers purchase more with a truly seamless two-way supply chain", said Jack Leeney, Co-Founder and Managing Partner of 7GC & Co.
About Sway
Sway is reinventing e-commerce logistics through the use of technology that enables quick, frictionless deliveries and returns. For brands, Sway provides a differentiated shipping and returns experience that is personalized to the shopper. By leveraging a two-way communication platform and a flexible network of driver-partners, Sway transforms the online shopping experience from purchase to product receipt all the way through returns. Sway's services are available across major cities in California, Texas, Washington, Washington DC, Maryland, Virginia, New York, and Florida. To bring Sway to your city, or for more information, visit https://shipsway.com/.
About 7GC & Co.
7GC is a cross-border growth investment firm with offices in California, New York, the UK, and Germany. The firm backs leading software and internet companies with global potential.
Contact:
Eric Wimer
eric@shipsway.com
484-269-6087
SOURCE: Sway
View the original press release on accesswire.com
