Outdoorsy Founders Share RV Sharing Economy Expansion Story

The Genesis of Outdoorsy: From Beige Conference Rooms to a $120 Million Vision

Jen Young and Jeff Cavins found themselves in a typical, uninspiring business setting – a bland conference room in downtown Vancouver, weighed down by presentations and lukewarm coffee. Both recognized a shared desire for something more fulfilling than their current professional paths.

Cavins, with four decades of experience leading technology firms, and Young, a seasoned advertising executive, decided to combine their expertise and pursue a venture rooted in their mutual love for the outdoors. Recognizing the vast number of recreational vehicles – over 20 million across the U.S. – often underutilized, they identified a significant opportunity.

Identifying a Market Need

They posed a crucial question: How could they democratize access to memorable outdoor adventures? The success of the sharing economy, exemplified by companies like Uber, Lyft, and Airbnb, provided a compelling model. The logical extension, they believed, was to apply this principle to the RV market.

In 2014, Young and Cavins committed their life savings to Outdoorsy, divested their homes, and embarked on a seven-month journey across the United States. This immersive experience involved extensive market research, engaging with both RV travelers and owners to lay the foundation for their company.

Growth and Investment

The dedication of the founders paid off. In June, Outdoorsy secured $90 million in a Series D funding round, led by ADAR1 Partners, alongside an additional $30 million in debt financing from Pacific Western Bank.

These funds are primarily earmarked for accelerating the growth of Roamly, Outdoorsy’s innovative insurtech business. Simultaneously, the company announced a strategic partnership with Collective Retreats, a glamping provider, to broaden its range of outdoor offerings.

Insights from the Road: A Deep Dive

Jen Young: Living on the road allowed us to directly experience the customer journey, identifying key pain points for both renters and owners. This firsthand understanding was instrumental in shaping our initial product development.

Owners, whether viewing their RVs as personal assets or entrepreneurial ventures, consistently prioritized comprehensive insurance coverage – liability, collision, and interior damage. This detailed feedback directly informed our product roadmap and the essential elements of a positive guest experience.

Adapting to User Behavior

Jeff Cavins: We discovered that many renters preferred not to drive the RVs themselves. This led to owners offering delivery services, which quickly became a popular feature on our platform. Currently, 60% of owners provide delivery and setup, ensuring a seamless arrival experience for renters – chairs, barbecues, awnings, and even a celebratory bottle of champagne are often included.

During their travels, Young and Cavins also observed the challenges of securing campground reservations. Recognizing a gap in the market, they invested in Collective Retreats, aiming to enhance the camping experience by combining the allure of the outdoors with the luxury of a high-end hotel.

Adding Value to the RV Rental Market

Young: Many smaller RV rental companies lack the necessary software to efficiently manage their fleets. This presented a significant opportunity for Outdoorsy, leading to the development of Wheelbase, our RV fleet management software.

Our time on the road revealed that this wasn’t simply a peer-to-peer marketplace; it needed to be a platform empowering entrepreneurs and business owners. We offer Wheelbase to RV owners free of charge, integrating it directly with the Outdoorsy marketplace. This provides a centralized view of inventory, check-in/check-out schedules, kit requirements, insurance coverage, and maintenance needs.

The Software Advantage

Cavins: Wheelbase currently accounts for 30% to 35% of our business. It enables owners to professionalize their operations and scale their businesses, much like power sellers on eBay. We’ve seen owners expand their fleets, generating substantial income – some earning $50,000 annually from a single RV.

Financing Growth and Addressing Insurance Challenges

The recent $120 million funding round, including the investment in Collective Retreats prior to the raise, is strategically allocated to scaling operations and expanding Roamly. A key driver for Roamly’s development was the legal prohibition of commercially renting privately owned RVs due to insurance restrictions.

Renting an RV could jeopardize an owner’s insurance policy, potentially leading to foreclosure on their loan. Roamly solves this critical problem, enabling safe and legal RV rentals.

Debt Financing Strategy

Cavins: We secured $30 million in debt financing to proactively address potential macroeconomic challenges, specifically anticipating rising interest rates. By locking in a credit facility at favorable terms – prime plus 25 basis points – we’ve fortified our balance sheet and minimized dilution for existing investors.

Capitalizing on the "Van Life" Trend

Cavins: The “van life” movement and the desire for outdoor experiences were already gaining momentum before the pandemic. While traditional travel sectors will recover, this alternative form of travel is here to stay. We’re experiencing explosive growth, with a 145% increase in bookings this year compared to last year.

Lessons Learned and Future Outlook

Young: My focus has always been on direct customer communication, which shaped the foundation of our marketplace. We prioritize building a community and fostering one-to-one relationships with business owners and parks, rather than relying solely on advertising.

Cavins: Running a fiscally responsible company, securing funding, and navigating investor relations are crucial. Many companies in this space are small and driven by passion, which is admirable, but we’ve brought a level of professional experience to ensure stability and scalability. Security is paramount, with a dedicated team protecting against cyber threats.

A Couple's Journey

Young: We complement each other’s strengths and perspectives, creating a resilient partnership. Even after seven years, I’m continually impressed by our ability to overcome challenges together.

Cavins: Jen is remarkably resilient and capable. As a couple, we’ve built a strong foundation of trust and endurance.

Looking Ahead

Young: In the coming year, Outdoorsy will solidify its position as the leading marketplace for outdoor travel and experiences. We’ll expand our physical presence and enhance the overall guest experience, extending beyond vehicle rentals to encompass the entire outdoor adventure.

Cavins: Our ultimate goal isn’t simply revenue growth; it’s earning customer trust and delivering exceptional experiences. If we prioritize customer love, the financial success will follow.