Israeli fruit and vegetables delivery company Shookit has split into two companies, setting up a new company called Bond, which is providing a delivery platform for external customers. Bond came out of stealth today with the announcement by Shookit that it has raised $15 million for the new company from Lightspeed, MizMaa Ventures, and TLV Partners. Shookit had previously raised several million dollars.
Bond and Shookit will remain sister companies under a parent company, which has raised the capital. Shookit was founded in 2017 by May Shochat, CEO Assaf Hachmon and Michael Osadon. Shookit operates in Tel Aviv through 20 branches which serve as small local logistics centers. They bring the produce straight from the farm, sell it on the Internet and provide it at short notice through deliveries to businesses and homes.
Shookit is planning to replicate this model through Bond in New York with technology that facilitates improved efficiency and full manage of inventory. Five months ago they began operating in New York for other brands using this model of small local logistics centers. Bond currently provides services to over 30 brands in New York using six local logistics centers. Bond currently delivers a range of brands from matrasses to chilled fresh desserts. The company plans expanding the range of brands and opening more logistics centers in additional US cities.
Bond's new customers can use its product at several levels - just the technology, connecting to the network and providing deliveries through Bond and building the full customer experience.
Hachmon told "Globes," "When we set up the company, we didn't plan founding a startup and raising venture capital funds. But everything worked well except for one important thing that we found out from the ends users. There were mistakes on the way that screwed up the supply chain. 30% of logistics costs went on reaching the neighborhood and 70% within the neighborhood from parking tickets to poor service. The only thing that seemed logical was to take the logistics center out of the city and disperse it to four logistics centers. The impact threw us out of our seats - the rise in satisfaction and revenue was tenfold in less than a year.
Published by Globes, Israel business news - en.globes.co.il - on January 28, 2020
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