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Pipedream Labs Raises $13 Million to Develop Urban Hyperlogistics Network

Pipedream's long-term goal is to connect entire cities via underground delivery
Courtesy of Pipedream Labs

In a world increasingly driven by the demand for faster, more efficient delivery systems, Pipedream Labs stands out with its innovative approach to logistics. With the recent infusion of $13 million in funding, led by Starship Ventures and supported by Cortado Ventures, Myelin Ventures, and various other angel investors and firms, Pipedream Labs aims to transform urban delivery through its hyperlogistics technology. This funding round will enable the company to accelerate the deployment of its "Instant Pickup" service and commence construction on the first large-scale middle-mile network in a selected city. Pipedream has received a total of $14.72 Million to date

The Vision of Hyperlogistics

Hyperlogistics is indeed a fascinating concept that aims to revolutionize urban delivery systems. By focusing on speed and cost-effectiveness, Hyperlogistics has the potential to greatly improve the efficiency of delivering goods to city dwellers. The goal of enabling deliveries in under ten minutes for less than one dollar is ambitious but incredibly promising for enhancing the overall experience of urban residents.

Hyperlogistics is achieved when people in a city can receive things in under 10 minutes for less than a dollar and send back that item just as easily as it was received. To do this, we need to make moving goods around a city and through buildings, as easy and painless as it is to move water. Garrett McCurrach, CEO, Pipedream

The comparison of reimagining the movement of goods in cities as fluidly as water flows through pipes is a powerful analogy. It hints at the seamless, efficient, and interconnected nature of the Hyperlogistics system. By leveraging advanced technology, automation, and innovative logistics strategies, Hyperlogistics could transform the way goods are transported and delivered within urban environments.

Pipedream’s Strategic Execution, Past, Present and Future

Over the past year, Pipedream Labs has partnered with Curiosity Lab and constructed nearly a mile-long underground test network in Peachtree Corners, Georgia. This network demonstrates Pipedream's capability to integrate its logistics solutions seamlessly into urban landscapes, connecting retail centers to office buildings and beyond. This pilot project not only showcased the feasibility of in-city networks but also set the stage for larger-scale implementations aimed at transforming urban logistics.

The funding will further support the refinement and expansion of Instant Pickup, a service designed to expedite and simplify the curbside pickup process. Instant Pickup incorporates modules from Pipedream’s in-city network to automate and expedite order handling at retail locations. Customers can expect their orders to be ready in less than 15 seconds upon arrival at a designated kiosk, a service that outpaces traditional drive-thrus in both speed and convenience.

Courtesy of Pipedream Labs
Courtesy of Pipedream Labs

With over 100 preorders for the Instant Pickup system, Pipedream Labs is poised for rapid expansion. The immediate focus is on enhancing service delivery to partners in the quick-service restaurant (QSR), retail, and grocery sectors. Furthermore, the selection of a city for constructing the first comprehensive middle-mile network will mark a significant advancement in urban delivery systems. This network will leverage underground infrastructure to improve delivery speeds and reduce costs, benefiting both businesses and consumers.

Pipedream Labs plans to collaborate closely with local government officials and city planners to maximize the utility and efficiency of its logistics solutions. By aligning its technological advancements with municipal goals, Pipedream aims to foster a symbiotic relationship that enhances urban livability and economic vitality.

This year, we will be selecting a city to build our first middle-mile network (a large scale underground delivery network that makes current deliveries faster and cheaper in a city) and collaborating with local government and city officials to maximize the benefits of our low-cost, fast delivery system for all their citizens. Construction is set to begin this year, with plans to start utilizing the network by next spring. Garrett McCurrach, CEO, Pipedream

The technology behind Pipedream's logistics solutions involves sophisticated underground robotic delivery systems that are both cost-effective and minimally invasive to existing infrastructure. These systems face numerous technical and logistical challenges, including integration with urban planning regulations and physical barriers within cityscapes. However, the successful deployment in Peachtree Corners serves as a proof of concept that may well encourage other cities to adopt similar innovations.

Looking ahead, Pipedream Labs envisions a future where hyperlogistics is a reality, fundamentally changing how goods are transported within urban environments. This vision aligns with broader trends towards sustainability, as Pipedream’s systems aim to reduce the problems associated with traditional delivery methods including the emissions and congestion from vehicle traffic, the jockeying for curb space, and the costs. Last-mile logistics significantly impacts the modern business landscape and account for a staggering 41% of all supply chain costs globally.

"What we looked at was, how do cities already do it today? Let’s not try to reinvent the wheel...Cities already have this way to mass distribute things: through this underground network of pipes.” Garrett McCurrach, CEO, Pipedream

As Pipedream Labs moves forward with its ambitious plans, the potential to reshape urban logistics looms large. The support from venture capital firms and the continued innovation in delivery systems paint a promising picture for the future of urban infrastructure. By reducing delivery times and costs, Pipedream Labs not only aims to enhance consumer convenience but also to set a new standard for the logistics industry. With a solid foundation and a clear path forward, the journey of Pipedream Labs from a visionary idea to a transformative reality is just beginning, promising to make hyperlogistics an integral part of city life within this decade.


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