European logistics startup ZITICITY, headquartered in Lithuania, raised €315,000 Seed Round led by Estonia-based early stage fund Superangel (with Taxify/Bolt, Transferwise and Skype founders as investors) and participation by Practica Capital, Startup Wise Guys, and angel investor Mikko Silventola.
The company helps merchants to fight Amazon menace in Europe with a platform that connects their e-commerce stores with gig-economy workers trained for fast package delivery. ZITICITY has been a massive success in Lithuania and Estonia, where it reached the average delivery time of 42 minutes.
Delivery speed is becoming increasingly important for European e-commerce. Majority of local e-shops cannot offer consumers same-day delivery - the new expected standard raised by industry giants, such as Amazon. As a result, 1 out of 4 customers abandon a shopping cart if such option is not available. Therefore business owners are in need of a faster logistics provider that could excel conventional courier companies. Currently, postal services and other traditional delivery companies cannot tackle the urgent needs due to long distribution processes and infrastructural peculiarities. Finally, in-house fleet is a rare alternative as most businesses lack funds and logistics expertise.
ZITICITY offers businesses a scalable way to utilize already existing urban infrastructure - people and their means of transportation (cars, bicycles, e-scooters, shared mobility, etc.) to deliver goods. Anyone can join the platform, become a courier and earn money delivering packages on their free time. Unlike competitors, ZITICITY provides the on-demand solution that optimizes and distributes deliveries in real-time without usual distribution centers that would cause major delays.
"Amazon became the biggest online retailer in Europe. Moreover, they are investing $800 million to enable free one-day shipping for Prime members. This means even more consumers are going to get used to having whatever they order show up at their doorsteps in 24 hours or less. Never has the need been greater for the rest of e-commerce to stay competitive and meet these changing customer expectations. We are privileged to enter the market at this particular time and give merchants even better tool to compete - 45-minute delivery." - ZITICITY Co-founder and CEO Laimonas Noreika explained.
"The difference between good company and amazing company is the quality of the founding team. We believe that Laimonas and the Ziticity team have what it takes to become the next European success story." - said Rain Rannu, managing partner of Superangel, a founder-driven early stage fund with offices in Estonia and Silicon Valley that has Taxify/Bolt, Transferwise, Skype and Monese founders as its investors.
ZITICITY had previously attracted angel investment from one of the early Uber’s engineers Maksim Golivkin, who now leads engineering team at Instacart. Startup recently graduated from Startup Wise Guys B2B SaaS Batch 12 acceleration program in Tallinn, Estonia.