Zumbox raises $8 million to fund paperless postal service
TweetWestlake Village, CA – August 24, 2009 – Zumbox, the world’s first and only paperless postal system, today announced the closing of its Series A funding with a total of $8 million raised. Investors include Art Bilger (Managing Member of Shelter Capital Partners, LLC) Rick Braddock (Chairman and CEO of Fresh Direct and former Chairman and CEO of Priceline.com), Michael Eisner (Founder of The Tornante Company and former CEO of The Walt Disney Company), Bill Guthy (founding principal of Guthy-Renker) and Donn Rappaport (CEO of Zumbox and Founder and Chairman of ALC).
Zumbox has created a web-based platform that powers the world’s first paperless postal system. The company has created a digital mailbox – a Zumbox – for every street address in the country. Postal mail can now be sent as digital files and received online, with no paper, printing or postage, and no scanning.
Zumbox represents the first practical alternative to traditional postal systems. By using Zumbox, businesses and other organizations not only enjoy significant reductions in their mailing costs, but also substantially reduce their environmental impact. Consumers enjoy greater convenience as well as a richer mail experience by accessing their mail online, going paperless, and receiving multimedia content in an entirely new and innovative way. Zumbox also represents an important alternative to commercial e-mail. Zumbox is secure (it is a closed system with bank-level security); it is based on an individual’s permanent street address as opposed to his or her e-mail address (providing greater accountability and reliability); it offers rich media capabilities; and Zumbox is spam-free.
“Despite a severely challenging economic climate, we were able to successfully complete this round of funding,” said Zumbox CEO, Donn Rappaport. “New investors include some of the most well-known and widely-respected names in the technology, marketing and entertainment industries.” Adding, “Zumbox is an idea whose time has come. We see their support as a testament to the fact that the world is ready for this new communications medium.”
Following a successful pilot in New Lenox, IL, Zumbox has exited beta and will launch the first stage of its national rollout starting in Q4 of this year. The company will facilitate delivery of paperless mail to approximately one million households in select markets through partnerships with municipal governments and media companies as well as both national and local mail senders.
“Zumbox has truly created a new communications medium, one that’s certain to be as valuable as it is disruptive,” said Rick Braddock, Chairman and CEO of Fresh Direct. “By combining the unique address system of the USPS with the power of Web 2.0, the company is revolutionizing how content of all types can be distributed, accessed and consumed.”
August 25th, 2009 13:36
please be more specific on how this will work for the individual. a business i can somewhat see. how much will this cost to use your service?
August 25th, 2009 17:03
Let me see if I understand this. I will be charged a monthly fee to view mail on my computer that the PO would deliver right into my hands for free? When I factor in the paper and ink cost for printing out mail I need a hard copy of I’m not so sure this is a good deal.
August 25th, 2009 17:15
Zumbox is free to receive any and all mail. The basic cost to send a piece of mail is 5 cents per piece. But users can send 50 pieces of mail for free each month.
August 25th, 2009 18:04
Wait until some hacker breaks into the system..
August 25th, 2009 18:06
This won’t fly for several reasons.
1) Not everyone has a computer or high speed internet.
2) If people wanted paperless mail they could opt out of paper billing for many of their bills. 90% of people surveyed said the prefer to RECEIVE hard copy billing statements.
3) I do not want to peruse catalogs and mail sitting at my computer.
4) You think your grandmother will want a digital Christmas card? She can even open the file!
5) Makes reading mail impractical. I cannot take my computer into the bathroom.
‘Nuff said.
August 25th, 2009 18:16
I don’t check my email now because of the spam. How am I going to get a letter from my dad that he has written? Someone has to open and scan the letter. This is against the law to open someones mail. This gives me a good reason to trash this computer.
August 25th, 2009 19:19
Zumbox is a bit like FedEx. When the USPS didn’t offer overnight delivery, a private company stepped in to offer it. Today, the USPS doesn’t offer digital delivery. Zumbox does. It’s for those who have a computer and want to get some, most, or all of their postal mail online in one, secure place (Zumbox provides bank-level security) with access to it from anywhere in the world.
More than 90% of our mail starts digital. Digital is the native format of our mail (before it gets printed and shipped). The USPS delivers these digital files by hand. Does anyone else think that’s odd?
August 25th, 2009 20:06
yea it free now then like everything else once you sign up then the rates go up.
August 25th, 2009 21:40
if a bunch a rich bastards are backing this there is no way its free!!!!! they want all you computer idiots to get hoked so they can charge you up the ass!! how much money do yuo pay to have mail delivered to your house six days a week? NOTHING!!!!!!
doesnt anyone care about the 700,000 employees at the usps? do you honestly think america needs hundreds of thousands more americans on unemployment?!!
people pay your stinking monthly bills thru the mail!!!
its very simple and it has been done for 100+ yrs now,,,
August 25th, 2009 22:16
This is a crazy fad that will pass…like…pockets on pants. Silly investors. All those postal employees posters above are the smartest guys here.
August 26th, 2009 09:44
People think about this!
What deals do cable subscribers offer as to get you in, then the rates spike!
Slick, decieving salespeople are in more than just in car dealers nowadays!
August 26th, 2009 11:54
Don’t postal rates keep going up? I heard 50 cents is just around the corner. The cost of sending first-class mail has far outpaced inflation.
August 26th, 2009 17:43
iiii
August 26th, 2009 17:46
The United States Postal Service offers the cheapest postal rates of the world. This paperless postal service might be the future for the rich but not for ordinary working people like me.
August 26th, 2009 22:05
Can you say identity theft? This is all that will happen to any and all data stored on their servers. Instead of a localized event that may occur once in a great while with a postal worker now with Zumbox some employee will sell their access to someone for a price and everyone one in the system is at risk! This happens a lot with big databases with a lot of information on them. Sure you mail may be paperless. Sure it might be free for 50 pieces and yes your identity will be stolen. No matter what they say it will be hacked. They’ve but a big red x on them for hackers by doing this. Very risky to have all this info on one system or software user BEWARE!!!
August 27th, 2009 20:38
what happens when the system crashes and you have no hard copy. How will you pay your bills. let alone the system being hacked into there goes all your information. No thanks i will stick with usps
September 4th, 2009 08:08
What do you think Zumbox will do with all the information they gather about your mailing address? They will make it available because they will know who mails what to your address. Today, I’m the only one that knows this info, why would I want a record of all mail sent to my address sitting on one of their (or anyone’s) servers? Why would I want to share this data with anyone else?
September 6th, 2009 17:59
[...] that every street address (delivery point) will be tied to the personal communication device. Zumbox is already trying to offer an e-mail account for each street address, as means to receive your [...]
October 14th, 2009 10:13
This is a bad idea. You’re asking people to entrust their financial and personal data to an unknown upstart company? And it’s only in Beta stage? Hello hax0rs. Not to mention your “mail” address will be sold and traded to marketing companies and other junk mail direct marketers. So in short, FailBox needs to GTFO my internetz