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Doorman Cancels Unlimited Deliveries Option, Cites “Losing Money”

Monday, October 31, 2016 18:09
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If you live in a building with a doorman, you don’t need Doorman. If you don’t, you do. The company is making it easy to accept deliveries when you’re out and about, but realized it was getting so successful in changing the patterns of how its customers do online shopping, that it was effectively losing money on each customer.

“We didn’t expect that Doorman would completely change peoples’ shopping behavior,” the company’s founder and CEO, Zander Adell, tells me. “We now know that Doorman customers shop online twice as much within 6 months of signing up. Unfortunately, that means our original $19 and $29 per month plans stopped making sense, and we’re in effect losing a lot of money on some of our customers.”

The company’s new payment tiers are greatly simplified — and a lot more expensive than the old plans.

The new payment plans go into effect in December. People who were on the original Silver and Gold unlimited parcels plan are getting nudged down to the Basic $19 per month plan, which includes 5 packages per month. The other new plans are Plus ($35 per month, which includes 10 packages at $3.50 each, with additional parcels charged at $4.50), Pro ($55 per month) and Premium ($89 per month). At the top-end plan, the company also introduces cardboard box recycling, so customers don’t have to deal with the recycling themselves.

The company currently still operates only in San Francisco, New York and Chicago, but has ambitions for further expansion in the imminent future.

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  • DK

    The only company meant to make money on delivery is the Mail service. What they say they are loosing is super normal profit.

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