Bungii's 2021 can be summed up in one word: growth.
The Overland Park-based company has cemented its niche in providing on-demand, last-mile delivery for retailers, which drove 200% revenue growth last year. Bungii also expanded its services to 25 new geographic markets during the last two quarters, bringing its total to 40 markets. By year's end, it aims to reach 75.
Although Bungii still offers big-and-bulky item delivery services for individuals, its primary revenue source has become retail partners, such as Best Buy and World Market.
"We're turning delivery from a pain point into a tool that our partners use to delight their customers," Bungii co-founder and CEO Ben Jackson said.
The Covid-19 pandemic propelled a shift to online ordering. Bungii retail partner BJ's Wholesale Club, for example, reported a 300% increase in e-commerce demand in 2021. Amazon's delivery prowess also has spurred a consumer's delivery expectations to "drastically increase."
"What's fascinating is that retailers are learning that their customers are often more influenced by delivery than any other type of interaction," he said.
Jackson cited several sources, including AlixPartners and eFulfillment Service, which found that 65% of shoppers switch to the competition when delivery isn't fast enough and that 97% of consumers now define fast delivery as same day. For 61% of consumers, a same-day delivery option increases their brand loyalty, according to a Capgemini Research Institute study.
"Delivery's becoming a key part of retailers' offerings to their consumers," Jackson said.
Bungii helps fill the last-mile gap and eliminates complexities for retailers. Not only can Bungii provide same-day delivery, it can deliver bulky items within hours to a retailer's customers. Common deliveries include furniture, big screen TVs, appliances and building materials such as lumber. Some customers are ordering items like 50 pounds of dog food.
With its geographic expansion, Bungii has adopted a systematic approach that's informed by retail partner demand. Bungii collaborates with them to identify strategic markets, which creates built-in demand for its services. Nationwide, it has nearly 15,000 drivers.
"The transportation industry as a whole is moving from something that individuals and businesses own to a service that is on-demand via technology," Jackson said. "The big and bulky delivery space is the next major market to be completely reinvented, and we're the ones leading it."
