Shipping API Shipbeat raises €1.2mn in seed capital
Shipbeat, a API for shipping that enables businesses to do shipments online, yesterday announced a 1.6 million euros investment led by Sunstone, SEED Capital and former Just Eat’s CEO Klaus Nyengaard. This fresh funding will be used to further expand the Danish company’s product, hiring and to complete the necessary software integrations.
Shipbeat was founded in early 2014 and currently runs a beta in its home country Denmark. It’s basically a ‘logistics-as-a-service’ tool, by offering an API that aggregates the services of leading parcel delivery companies so customers can choose all the delivery options they want.
To us this seems like a pretty good idea and something there’s definitely a demand for. And that’s very true for Shipbeat’s co-founder and CEO Kenneth Svenningsen who, as formerly CTO of ecommerce site Miinto, knows about the problems of integrating logistics carriers.
Stripe, but for logistics
“At Miinto we needed to integrate multiple shipping carriers into our e-commerce platform to improve operations (labels, booking of pickup etc.) in all our markets”, he told TechCrunch. “That meant making and maintaining integrations up against legacy shipping carrier systems, which was very time-consuming and painful. We kept asking ourselves, why do we even face this problem today? We needed a single and simple solution, much like a modern payment service provider like Stripe, but for logistics.”
70% of cart abandonment due to lack of delivery options
Acording to Svenningsen, shipping is a key driver of conversion and retention in ecommerce. And consumers just want choice and convenience. “The lack of delivery options explain 20-70% of shopping cart abandonment”, he tells Øresund Startups. This website even knows to mention that ecommerce shipments continue to grow very fast, with over 16 billion parcels delivered to consumers worldwide per year. And in Europe alone, online stores annually ship goods worth 225 billion euros to consumers.
And how does Shipbeat works exactly? You provide some basic information on what you need to ship, where to and from where. Shipbeat returns the lowest possible rate for the shipment along with label, track & trace as well as booking pickup if necessary. Shipbeat will launch internationally in 2015, so stay tuned…