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package.ai

by Ziv FosseyLaunched 2017via Nathan Latka Podcast
See all SaaS companies using cold email
MRR$120k/mo
Growthcold email
Pricingsubscription
The Spark

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.

Building the First Version

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.

Finding the First Customers

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.

What Worked (and What Didn't)

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.

Where They Are Now

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.

Why It Worked
  • 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.
How to Replicate
  • 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.

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