FlyCleaners, a New York startup providing on-demand laundry pickup and supply, has laid off “a big quantity” of its workers, co-founder and CEO David Salama informed TechCrunch.
This confirms a narrative earlier this week in Crain’s New York reporting that FlyCleaners filed a notification with the Division of Labor outlining plans to shut its Lengthy Island Metropolis plant and lay off 116 workers.
As Salama defined after we profiled him a number of years in the past, FlyCleaners clients can use the cellular app every time they need somebody to choose up their laundry — the startup handles pickup and return, whereas the precise cleansing is dealt with by native companies.
In an electronic mail concerning the layoffs, Salama informed me that the corporate (which raised a $2 million spherical led by Zelkova Ventures again in 2013) created its personal group for pickup and supply as a result of “after we began FlyCleaners six years in the past, the final mile logistics business was merely not the place we would have liked it to be as a way to successfully service our clients.” Extra just lately, nonetheless, the corporate has been testing out partnerships with different logistics firms as a technique to “complement” its personal group.
“Just lately, it grew to become clear to us that the price of our inside group was simply too giant to bear and it was beginning to hamper our means to execute strategically and to maintain and develop our enterprise,” Salama continued. “And so, that [led] to the painful choice to put off a lot of workers and to proceed as a extra asset mild group.”
He added, “We don’t anticipate that this transformation will materially lower the service we provide our clients. If something, by partnering with bigger scale logistics suppliers, our service ought to be extra environment friendly and resilient than it at present is.”
But when companions are dealing with pickups, supply and the laundry, what does FlyCleaners deliver to the desk? After I requested what the corporate will concentrate on transferring ahead, Salama stated, “I favor to be discreet about it[,] however I’m snug saying that our plan is to leverage our know-how to create one of the best buyer expertise potential.”
He additionally stated that the startup is working with its logistics companions to search out new positions for laid-off workers.