CEO SERIES Episode 7:
A Conversation with Skipti CEO Mike DePace
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>> Hi my name is Mike DePace, I'm the CEO here at Skipti. And Skipti is automating circular experiences for retailers, brands, and end users. So what we've noticed in society is that millennials and many others are beginning to prefer to spend their money on experiences rather than material things.

And the cost of housing is increasing every day and the spaces that we live in are getting smaller and smaller. And so all of this kind of moves us to turn to sustainable services that provide on-demand access to products, without the burdens that come along with ownership. We've seen many of these models rolled out very successfully.

But we also see a big hole in the market, which is that buying goods is easy, that's been streamlined over the years from the likes of Amazon and many others, but borrowing and servicing goods is hard. And one of the main reasons is that companies lack the convenient online scheduling tools to do so.

The proper inventory management that's going to do that in a seamless way. And also, the delivery of a good that not only goes out, but comes back, that moves in a circle. So that's been our mission, to empower companies with this proprietary mission critical technology layer to really streamline circular commerce.

And so what do we mean by circular commerce? Two of the biggest categories of things that move in a circle is a rental or sometimes a demo, a try before you buy, that allows people to only own the things that they love. And also repair, which allows you to love what you own.

Both of these things create a much more sustainable commerce environment both for us and the world. So kind of breaking that down to give me some more examples of what these look like in the rental category. You can look at music, outdoor, tools, you have massive enterprise retailers that are renting hundreds of thousands of items every day from PA systems to tents and snowshoes and skis, to all sorts of tools around the home.

You have demo, we're working with some great companies, ebikes, electric motorcycles, things you need to test drive, maybe you wanna test drive them at home. And a lot of products that you need to try out, many of them, to find the right one for you, which could include tennis rackets or golf clubs.

If we have anybody in the audience who plays those sports, you know that there's a specification that you're trying to find. And then you also have repair, which is slightly different, where the good doesn't leave the merchant and be borrowed and come back. It actually leaves the end user, it goes to the merchants for that maintenance and comes back.

So it's a circle, but in the opposite direction. And tuning skis, getting instruments repaired, electronics, things like Geek Squad, all fall into that category. So in order to complete a bidirectional order, you need the scheduling not only for today, but for in the future. And so those are in hour increments, both this on our platform, works in store, curbside through a same day courier system, and through traditional shipping.

Handling payment is unique when it's in a circle, holding deposits, releasing those deposits. Inventory management is incredibly tricky and what the core IP and patents for the company are on. This allows us to rent things in a round robin fashion, flag for maintenance, handle multilocation, and then two way on demand delivery.

Today we're completing most orders within an hour. So not only can you try that thing or rent that thing, but you can have it at your house in an hour. So some of the traction that we're seeing in the rental and repair industry today, over $1.2 million run rate doing 1,000 orders a month in 34 cities in the US.

And the clients that we're powering are doing over 2 million rentals a year, so there's a ton more to digitize and streamline in the US and abroad. So the typical system is look for a store, we always see either contact forms or phone calls, call the store. Then you have to go down, either you don't have a car, and fill out paper sometimes and lug it back and forth.

On the Skipti system, it's a simple widget that pops up, you can select your item, you can put in your date and time and you can put in your credit card. So as I said, scaling across the us with our own fleet, but also we've integrated with many other last mile fleets to get us to 3,000 cities, so a much bigger footprint.

We've seen companies that we've powered go from an 8 to an 82.5 in NPS score. And our business unit economics here are basically there's an enterprise model and a small business model. Enterprise can range from 10 to 20,000 a month. And small businesses are much more of a self managed service so they can be offered more inexpensively.

And the whole thing really is a platform. So there's a core engine with an API. This can be introduced directly onto the retailer's website or through a widget that we host that's very similar to an OpenTable type model. And there's over 150,000 rental and repair businesses doing 25 billion in our industry right now.

So I will just close with one of my favorite points. Which is that we believe that we can do well by doing good. And by powering this circular economy, we're reducing overconsumption, unnecessary waste, and people who are producing things for obsolescence. So we're really, I think, positioned not only to be profitable but to do great things for the world.

 

A Conversation with Skipti CEO Mike DePace
Skipti is revolutionizing retail with a circular, turn-key solution that allows for seamless product scheduling and on-demand, roundtrip delivery.
ffVC first invested in Skipti in 2021
Mike DePace
Founder & CEO
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