Sway (formerly Returnmates) is a technology company that enables customer-centric delivery and return experience. And the company rebranded to Sway, a name representative of the multi-directional services offered to retailers, expanding beyond returns to incorporate last-mile delivery.
Sway recently announced a $19.5 million Series A led by 7GC. Additional participants in the round include Blackhorn Ventures, Lightshed Ventures, Rise of the Rest Revolution, and more. The funding will grow the team, expand coverage from 20 to 25 cities, and enhance the technology to provide additional value for brand partners and consumers.
Sway’s co-founder and CEO Eric Wimer was an early Uber employee who scaled their rideshare and UberEATS product into +25 markets across the U.S.. Following a horrible trip to the post office in the summer of 2020, Wimer and Co-Founder Kristian Zak saw an opportunity to leverage the same network to enhance the package delivery and returns experience.
Even though most legacy logistics companies were built before the acceleration of e-commerce, Sway is purpose-built to serve the needs and expectations of today’s brands and shoppers. And with next-day and two-day delivery services – coupled with a doorstep return and exchange product – brands can build stronger and lasting relationships with their customers. Sway’s technology offers two-way SMS support and visibility – analogous to rideshare or food delivery – enabling an on-time performance of +99% and a shopper NPS of 75.
The company grew its brand partners significantly, working with leading apparel and marketplace companies. And overall, brands have seen a 66% reduction in lost package rates and a 20% increase in repeat purchases compared to legacy carriers.
Doorstep returns and exchanges (a key differentiator for Sway) target a problem brands have historically viewed as a cost center. The returns handled through the Sway network are consolidated and shipped back quickly, thus reducing per-unit costs by 15% and shortening cycle times from 7 to < 3 days.
Sway also offers a powerful earning opportunity for driver partners through a technology-enabled gig marketplace. And transparent earnings and the ease of moving packages vs. people have created an additional place for workers to supplement their income.
KEY QUOTES:
“Consumers don’t choose to shop at brands because UPS, FedEx or USPS drop off the package. Up until today, delivery and return services have been treated like a commodity. With Sway, we become an extension of the brand’s experience. When you maintain an open channel with the shopper, deliver their package seamlessly, and pick up their return if it doesn’t work out, you redefine the shopper’s relationship with the brand.”
— Co-Founder & CEO Eric Wimer
“Sway is fixing the decades-old returns problem in eCommerce for merchants and customers with a business model that actually makes sense. Merchants reduce leakage, and customers purchase more with a truly seamless two-way supply chain.”
— Jack Leeney, Co-Founder and Managing Partner of 7GC & Co.
