October 31, 2022
Eco-conscious consumers in the United States who are concerned about the environmental impact of rapid delivery services such as Amazon Prime and Instacart may soon have access to a more sustainable form of e-commerce. The Rounds, a startup offering zero-waste refill and delivery services for household goods, is looking to expand to new cities after raising $38 million USD in a Series A round led by Redpoint Ventures and Andreessen Horowitz.
The Rounds’ mission is to make everyday sustainable choices effortless. Rather than following a conventional one-way shipping model where items are delivered from the retailer to the consumer who then disposes of the product and its packaging, The Rounds creates a “closed-loop” circle. Household goods ranging from personal care items to pantry staples are delivered to consumers in reusable packaging, and empty containers from previous orders are picked up at the same time. Unlike most subscription-based delivery services, The Rounds members schedule deliveries based on their individual needs and can easily modify the timing or content of their orders. Members pay $10 USD a month, but there is no annual fee, and tipping is not required.
The Rounds’ services are currently offered in four cities across the United States: Philadelphia, D.C., Miami, and Atlanta. With 100 full-time staff and over 10,000 active members, the company is looking to grow both its team and its market penetration. In the long-term, The Rounds hopes to establish a footprint in more suburban markets and major cities in the United States.
While The Rounds offers a more eco-friendly delivery option, the co-founders recognize it is not the most affordable one. As inflation continues to rear its head, The Rounds’ success may depend on how much of a premium, consumers are willing to pay for sustainability.
Jennifer Linde