UPS, Googleâs Schmidt Invest in Uber-Type Delivery Startup
Google Inc. chairman Eric Schmidt and UPS Inc. have invested in Roadie Inc., a service that links people who want packages shipped with people willing to drive them.
Call it Uber for your golf clubs and distant familyâs Christmas presents.
Roadie Inc., an Atlanta startup with backing from Schmidtâs venture capital firm, debuted its smart-phone app on Jan. 27.
Like car-sharing service Uber Technologies, its driversÌęâ or âRoadiesâÌęâ are expected to be regular citizens who just happen to be driving across town or across the country, not necessarily professional drivers.

Roadie founder Marc Gorlin has received $10 million in venture capital from Schmidt-backed TomorrowVentures, UPSâs Strategic Enterprise Fund and Warren Stephens of Little Rock, Arkansas-based investment bank Stephens Inc., among others. He already received money from some of the same investors in another company he co-founded, small-business lender Kabbage Inc.
âWe were attracted to this business because of Marcâs proven track record, and we like businesses that transform legacy businesses such as shipping and make it a good value proposition for everyone,â Court Coursey, managing partner of TomorrowVentures, saidÌęvia e-mail.
One challenge for Roadie: knowing what customers have inside their boxes for delivery. The U.S. government has investigated both UPS and FedEx Corp. for unwittingly delivering pharmaceuticals on behalf of illegal online pharmacies.
Gorlin said Roadie will try to prevent that by requiring both the customer and driver to photograph the item. If something illegal still gets through, Roadie will stand by its drivers, he said.
âAs with Uber, Lyft or everything else, whenever thereâs a service that becomes super successful, there are people that will try to take advantage of it and do bad things,â Gorlin said.
Roadieâs business model might seem to make it a competitor to UPS, which has a stake in it. Neither Gorlin nor UPS would say of what size. A UPS spokesman declined to comment, citing the quiet period before its earnings report. Gorlin suggested UPS recognizes the future.
âThe big hoteliers should have invested in Airbnb, the major transportation companies should have invested in Uber,â he said. âThat new technology, new way of doing things is going to come.â
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
The company is part of the growing âsharing economyâ that brings together buyer and seller, typified by Uber and home-sharing service Airbnb Inc.

The challenge facing Gorlin is standing out from many other similar startups. Altimeter Group, a San Mateo, California-based research firm, recently wrote about more than 200 of them, ranging from textbook-sharing apps to rent-a-friend startups.
âWho doesnât want to get paid for being a good neighbor?â Gorlin said in an interview. âThis seemed to be an area that did not really have a good answer, and the existing models that work for all the major delivery companies kind of breaks down on the individual item.â
Roadie has quietly been testing its app in recent months and it will go live today on Apple Inc.âs App Store and Google Play. Gorlin, 42, dreamed it up while outfitting his condo in the Florida panhandle with tile in the bathroom.
When the tile shipment got delayed in Birmingham, Alabama, âI said, Surely, someone in Birmingham is heading to Florida and theyâd stick a box of tile in their truck,â he said.
When people open Roadieâs app, they will find a âheat mapâ showing locations where customers have packages ready to be picked up, or âgigsâ in Roadie-speak. For now, only customers in eight Southeastern states can list their packages for pickup, but Gorlin hopes to expand nationwide soon. Also, Gorlin expects to announce places to meet up at various chain retailers, so nervous customers donât have to invite drivers to their homes, he said.
The fee for a delivery will range from $8 to $150 based on distance and the urgency of the delivery. The driver will keep 80 percent and give the other 20 percent to Roadie.
Ìę