Dispatch Goods Secures $3.7M for Reusable Restaurant Containers

The Growing Problem of Plastic Waste

Globally, increasing volumes of plastic containers are accumulating in landfills and polluting oceans as numerous countries cease accepting recycled materials from others. This issue is substantial; the typical American discards approximately 110 pounds of single-use plastic annually, with a mere 8% being successfully recycled within the United States.

Recyclability Challenges with Clamshell Containers

Many consumers assume that clamshell plastic containers obtained from restaurants, food delivery services, and grocery stores are universally recyclable. However, this is often not the case, as not all recycling facilities are equipped to process them.

Dispatch Goods: A Reuse Solution

Founded in 2019 by Lindsey Hoell, Dispatch Goods was created to address the logistical challenges of recapturing plastic containers, freezer packs, and associated packaging. The company’s facilities handle the washing, sanitization, and subsequent resale of these items for repeated use.

Customers, including restaurants and food delivery services, can arrange at-home collection via text message or utilize designated return bins for their containers.

From Medicine to Sustainability

Prior to establishing Dispatch Goods, Hoell pursued a career in medicine, but harbored a desire to relocate to California and embrace a surfing lifestyle. It was upon moving to California that she became acutely aware of the pervasive plastic crisis.

Hoell connected with her co-founder, Maia Tekle, through the Sustainable Ocean Alliance while launching Dispatch Goods. Tekle previously held the position of West Coast partnerships lead at Caviar.

The Limitations of Traditional Recycling

“While recycling can create a perception of positive action, its effectiveness is diminished without a robust secondary market for the materials,” Hoell explained to TechCrunch. “Containers are frequently downcycled, but a comprehensive infrastructure for collection and processing is lacking.”

Current Operations and Growth

Dispatch Goods currently collects and processes between 10,000 and 15,000 food packages each week. The company collaborates with over 50 clients, including DoorDash, Imperfect Foods, and 50 restaurants in the Bay Area, such as Bombera, which has replaced 4,000 containers since implementing Dispatch Goods’ services.

Seed Funding and Expansion Plans

Having replaced approximately 250,000 single-use plastics across its customer base in 2021, Dispatch Goods has secured $3.7 million in seed funding. Congruent Ventures led the round, with participation from Bread and Butter Ventures, Precursor Ventures, Incite Ventures, MCJ, and Berkeley SkyDeck. This investment brings the company’s total funding to nearly $4.7 million.

Building the Infrastructure for Reuse

Hoell and Tekle are actively involved in all aspects of the business, even acquiring skills in operating trucks and forklifts. However, their team required additional support, particularly following a substantial increase in monthly revenue from $700 last September to $20,000 in May.

The capital will be used to expand the team and enhance existing facilities, including a microhub in San Francisco and a new facility in Baltimore, to accommodate growing demand.

“Given the novelty of this approach, we are optimizing our processes while simultaneously designing facilities specifically tailored for reuse operations,” Hoell stated.

Future Investments and Partnerships

The company intends to allocate the new funding towards geographical expansion, forging additional restaurant partnerships, and exploring innovative packaging solutions. Three new team members will be joining the current staff of nine by the end of the year.

Focus on Business-to-Business Model

While Dispatch Goods initiated a pilot program targeting consumers last month, the company will primarily focus on serving businesses to minimize barriers to entry.

Key Performance Indicators

Dispatch Goods closely monitors the number of items collected and the number of stops made. Initially, the company collected around four items per stop, which has increased to an average of 12 items, while the number of stops has grown from three to approximately nine.

New Board Member and Advisory Support

Christina O’Conor, vice president at Congruent Ventures, will join the board of directors. Additionally, actor Adrian Grenier, co-founder of DuContra Ventures, has joined the advisory team.

Industry Recognition and Support

“The zero-waste movement is gaining momentum, and we believe circular packaging is essential for a sustainable future,” O’Conor remarked. “Lindsey and Maia have demonstrated the drive, strategic thinking, and commitment needed to create new systems supporting a reuse-focused infrastructure.”

Grenier expressed his long-standing concern regarding plastic containers, stating he actively avoids takeout and utilizes reusable containers whenever possible. He believes Dispatch Goods offers a solution that balances convenience with environmental responsibility.

“Reinventing established systems is a significant challenge,” Grenier added. “Consumers appreciate the convenience of on-demand services, but we must consider the associated costs. Dispatch Goods empowers businesses to embrace a more sustainable business model without sacrificing convenience.”