An on-demand retail platform unicorn that enables brands to realize fast, economic fulfillment has launched its newest micro-fulfillment center (MFC) in Dallas.
New York-based Fabric runs MFC operations for grocery and consumer brands throughout the U.S. and Israel. It combines intelligent robotic fulfillment with local last-mile operations to “redefine how supply chains work,” the company says.
Fabric is ‘well- positioned’ to grow into a decacorn
Fabric is at the forefront of the micro-fulfillment trend following its October $200 million Series C, which valued the startup at over $1 billion. According to Freightwaves’ Modern Shipper, Fabric achieved unicorn status while operating in just three cities: New York City, Washington and Tel Aviv, Israel.
With further growth in cities like Dallas and beyond, Fabric is “well-positioned” to become a “decacorn”—a company valued at $10 billion—Modern Shipper writes.
New Dallas MFC expands Fabric’s North American network
By opening its new MFC in Dallas, Fabric is expanding its growing North American network, which is expected to double by the end of the year—enabling delivery to nearly 90% of consumers across the U.S. in two days or less.
“We’re in the middle of a historic shift in consumer expectations when it comes to fast and free shipping,” said Colin Coggins, Fabric’s chief commercial officer, in a statement. “By placing our MFCs in strategic locations such as Dallas, we can use our software-led robotics and AI technology stack to help retailers meet today’s expectations for super-fast delivery and provide a future-proof strategy to meet tomorrow’s expectations without increasing overhead.”
Dallas was ‘strategically chosen’
Fabric says Dallas was strategically chosen for the new MFC “based on customer needs, population evaluations, 10-year shift studies, and detailed demographic analyses.
The company noted a recent Brookings Institution report that called Dallas a “rising star” among tech cities, and the fact that during the pandemic, Dallas has grown tech-sector jobs faster than the national average.
Companies like Amazon have gotten many online consumers used to fast, free shipping. But Fabric says retailers face “enormous challenges” in meeting this growing expectation, since shipping prices have “skyrocketed” and fast deliveries are “logistically complicated to execute.”
Fabric believes the solution is bringing fulfillment operations closer to where consumers live—and through its growing MFC network, it aims to do just that.
Chill Brands is first to launch in Dallas MFC
The first company to fulfill deliveries through Fabric’s Dallas MFC is Chill Brands Group, a lifestyle brand that develops, produces, and distributes hemp-derived CBD products as a tobacco alternative. All orders made via Chill.com will be fulfilled within the Fabric MFC. Fabric will then leverage geographical and logistical data about Chill customers to drive future integration into additional MFCs across the U.S. Fabric says this model will provide Chill Brands with “enhanced business intelligence to optimize delivery times sustainably.”
“We’ve got big plans to expand our e-commerce abilities, and we’re looking for an ideal partner to help us ramp up capacity without a huge investment in real estate,” said Chill Brands CEO Callum Sommerton in the statement. “Fabric’s MFC is a perfect fit for us and allows us to continue to deliver an exceptional customer experience from click to delivery.”
Fabric has 300 employees and some big investors
Founded in 2015, Fabric is backed by investors including Temasek, Canada Pension Plan Investment Board (CPP Investments), Corner Ventures, Playground Ventures, Princeville Capital, Innovation Endeavors, Aleph, and others. Besides its NYC HQ, Fabric has main offices in Tel Aviv and Atlanta and over 300 global team members.
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