The Doorman app was a big hit on Shark Tank, and business owners were eager to learn what happened to the company after the show. Well, we have good news and bad news. The good news is that the Doorman team has continued to grow their business and improve their product. The bad news is that they haven’t been able to secure a deal with any of the sharks…yet. In this article, we’ll answer some common questions about Doorman’s post-Shark Tank journey, as well as give you some tips on how you can improve your own business!
Founders of Doorman and His Story
The issue with many delivery services in the US is that most of them don’t order the packages in the evenings and on weekends. This means that if you aren’t home at the time of delivery, then your package could be returned or lost. To prevent this, Zander created Doorman so that customers can have their packages delivered to a secure location anytime during the day or evening.
Zander was a Tech Entrepreneur and Wharton Graduate and was inspired to create Doorman due to his own experiences he faced when ordering products online.
Doorman is basically a scheduled package delivery service that allows customers to select a delivery window that suits them. Customers can then track their package in real-time, and even change the delivery location when needed.
Adult people usually can’t afford to pick up a package during the daytime because of their busy schedules. Doorman was conceived to help them by bringing the package straight to their doorsteps.
And what’s more, if you live in the suburbs, chances are you will have to make a long, long journey to get the package. Doorman simplifies this as well by offering convenient pick-up locations near you.
Doorman also solves the issue of package theft, whenever the package gets left at your doorstep it’s unfortunately obvious that someone would be interested in stealing it. By using Doorman you can guarantee that your package is safe and secure, as Doorman locks up packages in their facility until the customer calls them and retrieves them.
The versatility offered by Doorman completely eliminates the inconveniences that can come with online shopping and makes it easier for customers to receive their packages without any issues.
As for the payment options, you can either pay for Doorman delivery by delivery or by signing up for a subscription plan. The subscription plan allows you to receive unlimited deliveries for a fixed monthly fee.
In terms of marketing, Doorman uses advertising campaigns on social media platforms like Facebook, Instagram, and Twitter to promote their service. The Doorman also managed to secure $ 3.37 million of funding raised in three rounds of funding.
Before appearing at Shark Tank the service operated only in the San Francisco Bay Area. However, Zander planned to expand the service to other cities and needed help from investors. [1] [2] [3]
Doorman at the Shark Tank
In 2015, Zander and his team pitched their idea for Doorman to the Sharks on Shark Tank. During the presentation, he highlighted the convenience of Doorman’s package delivery service: allowing customers to receive packages any time during the day or evening without having to worry about theft or lost items. He asked the sharks for $ 250 for 10% equity.
The Sharks then start asking questions about pricing, scalability, and customer acquisition.
Zander provided good answers to the questions that helped the Sharks understand Doorman’s business model. He said that at the moment of the pitch, he had 300 customers which were a few months after the launch of the service. Kevin said it would be nice for some big players like Fedex to add this same service. Zanders wanted to grow his business big enough in order for the ‘Doorman’ button to appear on checkout pages of online shopping stores.
Robert was curious about the customer acquisition cost and Zander said it was around $ 37. Lori is interested in the service, she has her personal doorman so she gets why people would like the service. She also gets excited that Zander plans on moving to the city of California next. Barbara is interested in the service and wants all sharks to go in for $ 250,000 for a 20% stake in the company. Robert and Lori agree. Zanders however counters with a 12% stake in the company for $ 250,000. Barbara says she won’t do the deal unless it’s a 20% stake. Lori tries to offer $ 250,000 for 15% while Robert offers $ 250,000 for 12%. In the end, Zander reaches a deal with Robert for $ 500,000 for a 12% stake in the company. [2] [3]
What Happened to Doorman After Shark Tank
So as we can see the Shark Tank story for Doorman has turned out to be very successful. After the episode got live, the orders started pouring in for Doorman. But did that fame last? It did, for a while.
Doorman’s subscription plan which includes unlimited deliveries for a fixed monthly fee turned out to be incredibly popular. This plan has made it easier for people to receive their packages without worrying about any additional fees or charges. They even managed to expand their operations all across the city and offer their services to other major cities as well.
The business also started expanding its customer base and was quickly able to acquire more customers.
In 2015, Doorman managed to earn $ 1.5 Million in a seed funding round which helped them to expand the service further. In fact, this allowed them to open places in Chicago and New York.
The company also expanded its services. Now they offer same-day package delivery services and pick-up services for returns. This made it easier for customers to get their packages delivered faster and make returns with ease.
However, it seems like Doorman were losing money because of their cheap subscription plans and lack of customer loyalty. This resulted in the company announcing it will increase its prices in 2016. This didn’t sit well with many customers who then had to pay more for the service.
But unfortunately, as with most businesses, things didn’t last forever. The company continued to struggle financially and eventually ran out of funds. This led to some tough decisions being made by the team at Doorman; ultimately this resulted in them having to shut down their operations in the year of 2017.
We think from this it’s pretty obvious that they failed to finalize the deal with Robert Herjavec as well. The lack of funds in the company could be one of the reasons Doorman had to shut down operations. If they did, we are sure Robert would provide some much-needed funds and advice to keep them going.
The official website of the product is now defunct and all social media channels have been removed. As for Zander, he’s now working as the Head of Development at the Magnesium firm.
We can blame the failure of Doorman on the lack of a proper business model. The company didn’t focus enough on customer loyalty and was too quick to make changes in its prices. This lack of consistency eventually led to the downfall of the company.
Lack of focus on density also may have been a reason for the downfall of Doorman. Though they managed to expand their operations, they weren’t able to penetrate deeply into each city.
Although Doorman may have faced a few setbacks, it didn’t stop them from making an impact on the industry. The company gave customers more options when it comes to receiving packages and made package delivery a lot easier and more convenient. This ultimately changed the way people receive packages and has encouraged other companies to offer similar services. [2] [3] [4]
Main Competitors of the Doorman
Doorman may have closed, but the idea behind it lives on. There are currently several competitors that offer similar services.
FedEx
FedEx is a global transportation company based in Memphis, Tennessee. It was founded in 1971 and offers a range of services such as package delivery, freight forwarding, logistics solutions, and financial services. FedEx has the ability to deliver packages anywhere within the United States in one or two days, or overnight with its Express service.
UPS
UPS is another major name in the industry. They provide shipping services throughout North America and Europe with great customer service options along with competitive prices. Although their services are not as comprehensive as FedEx, they still manage to provide decent coverage for customers looking for package delivery solutions.
Parcel
Parcel is a popular delivery service that provides same-day delivery and pick-up services. They have been around since 2021 and offer their services in many major cities across the United States.
The company offers basically the same thing as Doorman, but with some key differences in its approach. Unlike Doorman which was more focused on subscription plans, Parcel offers a pay-as-you-go model as well as discounts for regular users. [5]
FAQ
Who was the owner of the Doorman
Zander Adell was the founder and CEO of Doorman. He appeared on Shark Tank in 2015 to pitch his business, which at the time was a delivery service that allowed customers to schedule packages for delivery when they weren’t home. And he managed to get a deal with Robert Herjavec.
Despite this, Doorman didn’t last long enough to become a dominant player in the market. In 2017, Doorman announced it was shutting down because of the financial issues it was facing. The company had raised more than $ 3 million from startups, but apparently, it wasn’t enough to compete with the big players in the industry.
Is Doorman from Shark Tank still in business?
Unfortunately no, Doorman was unable to continue business after its Shark Tank appearance. The company shut down in 2017 but it did bring light on some ideas many future startups will be able to pick up and expand on.
What Doorman was, is an on-demand delivery service that allowed customers to receive packages when they were not home. It had a network of people called ‘Doormen’ who would accept the package for you, sign for it, and hold it until you arrived home.
Doorman received investment during their Shark Tank appearance from Robert Herjavec but still couldn’t stay afloat in the long run. The company was facing tough competition from companies like Amazon Prime Now, which was able to offer same-day delivery, and other companies such as Postmates or Instacart which offered grocery delivery services.
What is Doorman?
Doorman was intended to deliver packages directly to the customers, at any time of day. This allowed customers to receive packages when they were available, instead of waiting for the package to be delivered during a standard delivery window.
Unfortunately, due to a lack of a proper business model and financial struggles, Doorman had to close its doors in 2017.
Why did the Doorman fail?
Doorman may have landed an offer with the Shark, but the money means nothing when you lack a viable business model. Doorman was structured as a subscription-based service, allowing customers to take advantage of shipping discounts and convenience.
Unfortunately, the company had difficulty making its service profitable and never managed to acquire enough customers before running out of money. The primary issue with their business model is that they relied too heavily on the direct-to-customer (DTC) approach of selling to consumers.
This meant that they had to market their product directly to the consumer, competing with big box retailers and e-commerce giants like Amazon who have deep pockets and vast resources. Without a large customer base willing to pay for their service, Doorman was not able to make enough money from each transaction which eventually led them to run out of money.
Doorman also failed to manage their prices. They placed the initial fees too low, expecting to be able to raise them as the business grew. However, when customers saw the prices increasing they decided to stop using the service and switch back to traditional delivery methods.
Finally, Doorman failed to develop a strong brand identity. They started out with a single product (door-to-door delivery) but lacked a clear plan on how they would achieve their goals. Without a well-defined mission and strategy, it was difficult for customers to trust Doorman’s services and make sure that their packages were safe.
What happened to the Doorman?
Doorman was founded in 2014 by Zander Adell and was one of the most innovative last-mile delivery solutions on the market. After appearing on Shark Tank, Doorman started to expand its service area beyond San Francisco, where it was founded, to cover multiple cities across North America.
However, in 2016 Doorman struggled financially and had to pump their prices. That didn’t help much and eventually in 2017 the company had to close its doors.
We can attribute the short-term growth to their Shark Tank appearance, but ultimately they hadn’t been able to keep up with the high costs associated with a last-mile delivery business. In addition, they were unable to raise enough capital to support their rapid expansion plans.
Useful Video: Pitching Doorman | Zander Adell
Conclusion
Zander Adell wanted to create an innovative product that would make receiving packages easier and more convenient for users. Doorman was created to be the solution to this problem. After appearing on Shark Tank, Zander, and his team were able to secure a deal with Robert Herjavec that gave them hope to continue their journey toward success.
While initially, their journey was off smoothly, they managed to expand within their original city of San Francisco and had a promising increase in customers. They even managed to expand to New York and California.
Unfortunately, they were unable to secure the funding that they needed in order to continue developing and growing their business, which eventually led to the closure of Doorman. One of the main reasons for this was the lack of a proper business plan as well as other issues that hindered the growth of their business.
One of these was a struggle to earn income from the customer base they had, which led to a lack of funds for further development. They intended to increase the prices but this had led to a decrease in customer base which in turn affected their income.
Doorman may have closed its doors, but it is an example of how important it is to properly plan out your business before taking investors or launching new products. Having a proper business plan, budgeting correctly, and researching the market are all important steps to take if you want to be successful in your industry.
Despite the failure of Doorman, Zander Adell remains an example of a passionate entrepreneur who was dedicated to making a difference and whose work can inspire others looking to make their own mark on the world. He proved that no matter how difficult it may seem, you can take risks and create something innovative if you stay focused on your goals.
Thanks for reading! We hope this article has provided you with useful information on what happened to Doorman after Shark Tank. Good luck in your own business endeavors!
References:
- https://www.sharktankblog.com/evening-package-delivery-doorman/
- https://www.sharktankblog.com/business/doorman/
- https://buildd.co/startup/failure-stories/what-happened-to-doorman-after-shark-tank
- https://medium.com/@itamarzur/why-doorman-failed-and-what-other-delivery-startups-should-learn-from-it-657b4c778a8c
- https://www.cbinsights.com/company/mydoorman/alternatives-competitors