Clean Cube – Automated Doorman Service
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 6, 2015
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Clean Cube is a digital doorman solution addressing the "last mile" problem, providing secure and convenient delivery and pick-up services for online orders in residential buildings.
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Background Story
Clean Cube founders, Arthur and Ryan, identified a gap in the modern delivery process, where the final leg, known as the “last mile,” poses challenges for customers, involving delivery windows, doorstep vulnerabilities, or missed deliveries. Recognizing this problem, they developed Clean Cube as a digital doorman solution.
With a solid footprint in New York City, the founders emphasize the need for their technology to bridge the gap between consumers and on-demand service providers. They demonstrate the technology with a replica installation, showcasing its usability and convenience, particularly in residential buildings.
The Product
Clean Cube functions as a digital doorman, installed in residential buildings to facilitate secure and convenient delivery and pick-up services. Users receive a passcode upon registration, enabling them to access designated storage cubes.
The process involves selecting an available cube, entering the passcode, and securely storing or retrieving items. The system is modular and adaptable to various building sizes, with an average of seven apartments served per cube.
The founders envision expanding beyond residential buildings, placing Clean Cubes in locations like Starbucks, gyms, and ATMs, charging users a $10 access fee.
How It Went
The company’s position before Shark Tank
Clean Cube currently operates in 40 locations in New York City, ranging from buildings with 10 to 168 units. The company has established a business model where landlords pay around $7,000 per installation to enhance the building’s services, making it more attractive to tenants.
The founders aim to monetize the platform by charging a $10 access fee to subscribers. In the last 12 months, Clean Cube generated $130,000 in sales, with $65,000 (50%) coming in the last three months. The user base comprises 552 users, indicating a growing demand for the service.
The Negotiations:
The negotiations with the Sharks did not result in a deal. While some Sharks appreciated the concept and recognized the need for a solution to the last-mile problem, concerns were raised about scalability, monetization, and the challenges of dealing with various stakeholders in the installation process. Mark Cuban and Barbara Corcoran both expressed doubts about the business’s scalability and the challenges associated with convincing businesses to adopt the Clean Cube system.
Ultimately, none of the Sharks believed in the scalability or profitability of Clean Cube, leading to no offers being made. The founders, while expressing their desire for partnerships with Sharks, accepted the outcome and expressed their determination to continue growing the business independently.
