How This Mailbox-As-A-Service Company Is Disrupting A $5+ Billion Market
By Amit Chowdhry | September 14, 2023 | Source: pulse2.com
Arrive (formerly Dronedek) is a Mailbox-as-a-Service (MaaS) pioneer that provides secure, seamless delivery and pickup infrastructure for the last mile. The company’s solutions are designed to work with autonomous delivery networks (ADNs) comprised of drones and robots, and it can be used by businesses of all sizes. Pulse 2.0 interviewed Arrive CEO Dan O’Toole to learn more.
“So, when I had the idea of a smart mailbox that could work in an autonomous world, I literally went home, sketched out the idea, talked to a few people, and then hightailed it to the patent office. I beat the USPS and Amazon by just a few days. I think one day soon, I’ll be able to end that story with, “and the rest is history.” Because our smart mailbox is the next big thing.”
Dan O’Toole’s Background
O’Toole is a longtime businessman with a background in commercial real estate, but he has always been someone who has ideas. O’Toole said:
“I learned over the years that at least some of my ideas are pretty good ones, as evidenced by others executing on a similar idea and finding success with them. I can give you a handful of examples where I thought about something but didn’t act on it only to see it get to market with another company behind it. I believe that for every great idea anyone has, at least ten other people are also thinking about that same thing. It’s the people who act on ideas that really get things done. So, when I had the idea of a smart mailbox that could work in an autonomous world, I literally went home, sketched out the idea, talked to a few people, and then hightailed it to the patent office. I beat the USPS and Amazon by just a few days. I think one day soon, I’ll be able to end that story with, “and the rest is history.” Because our smart mailbox is the next big thing.”
Formation Of Arrive
How did the idea for Arrive come together? O’Toole shared:
Arrive CEO Dan O’Toole
“I was returning home from a meeting, traveling down a rural Indiana road, when I noticed a drone flying over a cornfield that was adjacent to the road. It made me wonder where it was going, what it was doing, how long it would be before drones would be a common thing. And that got me thinking about the next steps. Like most of the world, my wife and I do a lot of online ordering, and we’ve been victimized by porch pirates, had our deliveries damaged by weather or poor delivery service or sent to the wrong address.”
“I did some research and learned that the mailbox hasn’t really been updated since 1858, when it was first designed. I began designing a smart mailbox that could be a secure place for packages to sit until they could be retrieved by the intended recipient. With today’s technology, automation can take care of accurate and efficient delivery; we just needed a place for those packages to be kept. I organized a team with the expertise needed to design that smart mailbox, to network with the right industry people to market the product and began networking for investors.”
“We’ve now raised more than $9 million and expect delivery of our gen 2.1 mailboxes later this year for distribution. My biggest responsibilities now involve continued networking and capital raising, evangelizing and getting agreements in place with the industries and organizations that can best use our product.”
Favorite Memory
What has been O’Toole’s favorite memory working for Arrive so far? O’Toole reflected:
“Probably seeing how many people ooh and aah over our demonstrations and how the smartphones come out to record videos when we show how our units work with robots or drones. I’m a people person, and I love connecting with folks whether they’re investors or just people curious about the product. It’s really fun to see them experience that “aha” moment I had back when I first had the idea for this.”
Challenges Faced
What challenges has O’Toole faced in building Arrive? O’Toole acknowledged:
“We’ve had a lot of great success with this and have hit all the marks we’ve set out. Not that it’s always easy. Raising capital is hard. You really have to have a great product and the ability to explain how it will help people. Another challenge is keeping up with the technological advances. I mean, when we began, we were thinking only about drone delivery, so we designed the mailbox to open from the top to accept an aerial drop. But then, robotic deliveries started to emerge, using robotic devices.”
Gen-2 Arrive Point in front of a business
“So we needed to have a way for those devices to interact from a different portal. And, of course, we have the ability for humans to get into the device. We also discovered that our units could help enhance broadband capabilities, especially in rural areas, and we could be a power source for drones. Then, we realized we could also provide emergency alerts to help EMS teams find homes or for someone inside a home to alert their neighbors. Then, people asked for different configurations – could we have a smart mailbox on a boat, on a roof, or as part of an autonomous delivery network? Keeping up with all those iterations has been challenging and fun. I love what I do!”
Core Products
What are Arrive’s core products and features? O’Toole explained:
“The main units resemble a UPS mailbox – so a tall rectangle capable of accepting a large package. Most packages weigh less than 5 pounds and aren’t very large, so we built to accommodate the average package. It can open from the top or side by app or key. Packages are placed into the mailbox where they’re kept in a climate-controlled (to a point) space until retrieved by the user with the key or the app. So they’re safe for days if need be.”
Significant Milestones
What have been some of Arrive’s most significant milestones? O’Toole cited:
“Getting the patents for sure. Being at the front of that line has been key to getting the major players to see us as a real partner. Getting that first million dollars in investment. Getting delivery of our first prototype. Next will be delivery of units ready for market. Also, putting together a world-class team as well as successfully rebranding to Arrive.”
Funding
Upon asking O’Toole about funding, he commented:
“We’ve raised more than $9 million, mostly from crowdfunding and networking, and are always open to more. We expect to go public at some point and have secured the ticker symbol ARRV on the Nasdaq!”
Total Addressable Market
What total addressable market (TAM) size Arrive is pursuing? O’Toole assessed:
“Over 160 million addresses in the US alone, and that number grows by 4,000 new addresses every single day. Also, more than $6 billion and growing (See this). There are 160 million mailboxes in the U.S. alone – and we aim to serve the world.
Differentiation From The Competition
What differentiates Arrive from its competition? O’Toole affirmed:
“There aren’t that many companies in the field, and as I said, we were first to the patent office, so we’re ahead of the game compared to others. We’ve been working hard to meet market demands, bringing in new partners, and working with industry leaders who will be making the biggest advances in this kind of delivery. Think of large operations like hospitals, business complexes, and the like.”
Future Company Goals
What are some of Arrive’s future company goals? O’Toole concluded:
“We expect to have a device that will be considered as necessary as a microwave oven or smartphone – devices few people saw a need for but now can’t live without. We want to be a regular utility like power or water service.”