Afloat, a gift delivery app, has expanded its services nationwide in the U.S. Previously only available in select cities, the startup now allows users across the country to shop from local stores and have gifts delivered to loved ones on the same day. The app was founded by Sarah-Allen Preston, who was inspired by her own experience of her newborn undergoing open heart surgery. After receiving thoughtful gifts from loved ones, Preston wanted to make immediate gift-giving possible for everyone, regardless of their location.
By leveraging technology, Afloat aims to provide the convenience of online shopping and instant delivery while also supporting local businesses. The app takes care of the entire gift-giving process, including gift wrapping and adding a handwritten note for a personal touch. DoorDash drivers handle the delivery part. Preston believes that this approach is more thoughtful than receiving a typed Amazon receipt.
The COVID-19 pandemic highlighted the importance of supporting local businesses, with nearly 40% of small businesses having to shut down during the lockdown in 2021. According to a survey by Intuit, 62% of participants expressed a desire to buy from small businesses in their community. E-commerce giants like Etsy have also recognized this trend and have launched initiatives to promote independent shop owners.
Afloat currently works with 100 store partners, including bakeries, baby stores, bookstores, florists, gift stores, and jewelry stores. The company has helped its store partners expand their gifting revenue by 30-50%. To allow more businesses to join the platform, Afloat has transitioned to a software-as-a-service (SaaS) model. They offer subscription plans with marketing and merchandising support, sales data, and other useful features. This shift allows Afloat to be SaaS anywhere and everywhere.
In addition to expanding its services for stores, Afloat is also developing a subscription tier for consumers. This will provide access to premium features such as scheduling deliveries and receiving notifications about new gift offerings. Currently, the app has over 30,000 users and has received funding from Goodwater Capital and Techstars, totaling over $5 million.
Afloat’s nationwide expansion and commitment to supporting local businesses make it a compelling option for those looking for convenient and thoughtful gift-giving. By utilizing technology and partnering with local stores, Afloat offers a unique and personalized experience that resonates with customers. With its SaaS model and upcoming consumer subscription tier, Afloat continues to innovate and provide value to both businesses and users alike.