package.ai
Ziv Fossey had spent a decade building communication software at Microsoft, Skype, and a Zoom competitor called Fuse. But it took a personal frustration to spark his next venture. In Silicon Valley, a UPS delivery person mishandled his computer delivery, and the experience crystallized a realization: the problem wasn't logistics—it was communication. "Chatbots were kind of taking off," Ziv recalls, and he saw the opportunity to apply conversational AI to the broken last-mile delivery experience. In 2017, after moving his family back to Israel, he and his co-founder Joav (the CTO) decided to build package.ai.
Ziv and Joav started lean. They raised a $700K pre-seed round in 2017 at a $1-1.5M pre-money valuation, with support from Nielsen Innovate, an Israeli government-backed incubator that became a major shareholder. The team—now split between 7 engineers in Israel and 3 in the US—focused entirely on R&D. Rather than chasing the broad delivery market (Uber Eats, DoorDash), they narrowed their focus to a specific, underserved vertical: home furniture and appliance delivery, where last-mile logistics are genuinely complex (moving sofas and dishwashers into homes requires real coordination).
The product evolved into a two-pronged offering: delivery management software for routing and operations, plus a conversational AI chatbot interface for customers. A consumer ordering a TV from Spencer's could now message the delivery operation in real-time, make changes, and get automatic responses—reducing the "micro stress" around coordinated deliveries.
Ziv's first big break came from sheer persistence. He and Ralph Schulberg, their head of sales, ran a cold email campaign targeting furniture and appliance delivery companies across North America. Two early customers stuck: a furniture retailer in Australia (Sydney and Melbourne) who believed in the vision early, and Stella Delivery in New Jersey, who "just took a chance on us" despite the immature platform. That willingness to work with early-stage products became a pattern—cold email still worked, but only because they were genuinely solving a real problem.
Package.ai's pricing model proved elegant: they charge per delivery vehicle (a proxy for order volume) plus fees for review generation by location. The sweet spot landed at $60K ACV annually. By the time of this interview, they had over 24 customers across North America, generating roughly $120K in monthly revenue—up from $50K just a year prior. That's 2X year-over-year growth.
The real magic was in the metrics: zero churn. No customer had ever left. They'd generated over 10,000 reviews with "engagement rates through the roof." Ziv credits the core insight: turning a logistics headache into a marketing engine. Retailers loved repeat sales and glowing reviews from delivery experiences that felt less chaotic.
The company stayed focused on what it didn't do: they didn't source drivers, didn't try to be a marketplace. They managed operations and communication. Around 1,000 drivers now operate on the platform.
With $3M raised to date (pre-seed + seed rounds) and over $1.4M in ARR, Ziv is gearing up for a Series A—targeting $5-10M at a 30-40X revenue multiple ($40-50M pre-money valuation). At 46, married with three kids, and sleeping 5-6 hours a night, Ziv is looking for the right partner, whether in Israel or the US. The traction speaks for itself: furniture and appliance delivery at scale, zero churn, and a product that was born from genuine frustration and solved a real market gap.
- •Ziv's decade of experience building communication software at Microsoft and Skype gave him deep domain expertise to recognize that delivery problems were fundamentally communication problems, not logistics problems.
- •By narrowing focus to furniture and appliance delivery instead of competing in the broad delivery market, package.ai became the only solution purpose-built for an underserved vertical with genuinely complex last-mile coordination needs.
- •The product was designed to turn a customer pain point (delivery stress) into a business value driver (review generation and repeat sales), making it easy for customers to justify the investment and see ROI.
- •Zero churn across 24+ customers indicates the team solved a real, urgent problem that customers actively needed, making word-of-mouth and relationship-building with cold prospects far more effective than it would be for a nice-to-have product.
- 1.Identify a specific vertical where last-mile operations are genuinely complex and underserved (not dominated by well-funded incumbents), rather than competing in broad markets.
- 2.Build a two-part solution that solves an operational problem while creating a secondary business value (in this case, delivery management plus automatic review generation to drive repeat sales).
- 3.Run cold email outreach campaigns targeting decision-makers in your chosen vertical, but pair every email with genuine relationship-building and willingness to work with early customers despite product immaturity.
- 4.Choose a pricing model tied to a key operational metric of your customers (vehicles operated, deliveries completed) rather than arbitrary tiers, ensuring price scales with customer value.
Similar Companies
247.ai
$25.0M/mo247.ai, founded by PV Cannon in 2000, is an AI-powered customer service automation platform serving over 150 enterprise customers with $300M+ in ARR. The company raised only $20M from Sequoia (2003) and bootstrap, achieving 10% net profit margins while maintaining a 12-month CAC payback period and 100% net revenue retention. Despite a security breach setback around 2018, 247.ai has recovered and recently achieved 20% new revenue booking growth in their best quarter.
iCIMS
$13.3M/moiCIMS is a bootstrapped SaaS provider founded in 1999 that dominates the talent acquisition software market as the #2 player, serving 3,500 enterprise customers with an average monthly spend of $4,000. The company exited 2017 with $160M ARR and is targeting 25%+ annual growth while maintaining profitability, recently acquiring Text Recruit to expand into candidate messaging and recruitment advertising.
Zoom
$12.0M/moZoom is a freemium SaaS video conferencing platform founded by Eric Yuan in July 2011 after he left Cisco to build a next-generation collaboration solution. The company has grown to 850,000+ paying customers across individual, SMB, and enterprise segments, generating over $12M in monthly recurring revenue with approximately 100% year-over-year growth. Rather than focusing on customer stickiness or aggressive growth targets, Zoom emphasizes customer happiness and organic word-of-mouth acquisition, which has proven highly effective in driving viral adoption.
Madwire
$10.0M/moMadwire is a comprehensive SaaS platform for small businesses (1-100 employees) that combines CRM, payments, invoicing, billing, e-commerce, and multi-channel marketing tools in a single platform. Founded in 2009, the company has grown to $120M ARR serving 20,000 customers with an average revenue per user of $500/month, while maintaining strong unit economics ($3,000-$4,000 CAC with 3-month payback) and recently turning profitable with a focus on reaching 15-20% EBITDA margins. The company is exploring an IPO within 12-18 months without having raised substantial capital beyond an initial $7.5M.
SwiftPage
$7.0M/moSwiftPage is a CRM and marketing automation platform founded in 2001 that targets small businesses. Under CEO John Oshel's leadership since 2012, the company scaled from 60,000 customers with $26.2M revenue in 2015 to 84,000 customers today with an estimated ARR of $36M+, maintaining 1.5% monthly logo churn and a 6-7 month payback period with a sub-$500 CAC.