David Fuchs, Martin Twellmeyer, and Rob Rebholz shared a dream to create a company that addressed a real need and yet disrupted an industry in a positive way. They focused on the self storage industry in London.
The trio felt that the self storage industry in the UK was ripe for change. They knew that the market was dominated by just a few businesses, which had a gross margin of more than 60 percent. They felt that because these companies were making a nice income, they were not concerned about innovation. These men were excited about the idea of creating on-demand storage and decided to see if they could develop it into a full-fledged company.
At the end of June, Fuchs, Twellmeyer, and Rebholz started working with Rocket Internet, a venture capital firm that helps people take an idea and develop it into a successful business. Within a record-breaking time of only six weeks, they launched SpaceWays.
SpaceWays is not a typical self storage business. They don’t have units for people to rent. Customers don’t have to rent a lot of space when they only need a small amount. Customers only pay for the space that they really need. And customers never have to take time out of their busy schedule to take or retrieve their belongings from storage.
The SpaceWays business model has just three easy steps. A customer calls SpaceWays and requests storage boxes. SpaceWays delivers them for free at a time that is convenient for the customer. Next, the customer packs the boxes or gathers together their bulky items (e.g. skis, a suitcase, an office chair) that need storing. Last, SpaceWays’ professionally trained drivers pick up the boxes or large items and take them to a secure warehouse that is monitored by closed-circuit TV surveillance.
When a customer wants their belongings, they view their account online, select the items to be delivered, and SpaceWays delivers them within 48 hours.
The delivery of SpaceWays boxes is free. The pickup of filled boxes or over-sized items is free. Storage cost only $7.50 per month per box or item. Retrieval costs for the boxes is only $24 for as many boxes or items as the customer wants. These prices are competitive with other local storage options.
Fuchs, Twellmeyer, and Rebholz’s vision was to provide storage services that were more flexible, more convenient, and were a better value for the money than what was typically offered in the market place. It looks like they have succeeded.