On-demand gifting startup Afloat goes nationwide

Afloat, the gift delivery app that lets you shop at local stores and pick up gifts for a loved one the same day, is now available across the U.S. The startup announced Monday that it is rolling out its service nationwide, after previously being available only in select cities, including Atlanta, Dallas, Charleston, Fort Worth, Kansas City, Nashville and Wichita.

The startup was founded by Sarah-Allen Preston after she experienced the stress of open heart surgery on her newborn. After receiving thoughtful gifts from loved ones, Preston wanted to make it possible to give gifts instantly to anyone, including those who live in another state, to support their loved ones in need.

“But when I recalled the experience, I strangely didn’t remember the stress and heartache. “The only thing I remember is how supportive people were, how much I cared and supported me… So I took that feeling and amplified it in the world through technology,” she told TechCrunch.

Afloat’s goal is to provide the convenience of online shopping and instant delivery, while supporting local businesses without leaving home. Afloat takes care of the entire gift-giving process, including wrapping the gifts and adding a handwritten note to make them even more personal. (Preston mentioned that this is more thoughtful than getting a typed receipt from Amazon.) When it comes to delivery, DoorDash drivers take care of that.

After the pandemic, many customers realized how much they appreciated their local stores. Nearly 40% of small businesses had to close during the Covid-19 lockdown in 2021. The desire to shop from small businesses remains strong. According to a recent survey by Intuit, 62% of participants said they wanted to buy from small businesses in their community. E-commerce giants are also benefiting from this way of thinking, as evidenced by Etsy’s new gifting initiative featuring curated gift guides featuring independent shop owners.

The app currently works with 100 store partners, ranging from bakeries and baby stores to bookstores, flower shops, traditional gift stores, jewelry stores, etc. According to the company, it has helped its store partners increase gift revenue by 30-50%.

The company has also moved to a SaaS (software as a service) model to allow more stores to join the platform, including other types of businesses like spas and similar businesses. Afloat will offer subscription plans for $99/month (Gold) and $299/month (Platinum), which include a newly launched dashboard that provides stores with marketing and merchandising support, as well as sales data and other useful features.

“We don’t have to force markets anymore, which is really exciting… We’ll be able to use the SaaS model anywhere, anytime,” Preston said.

Additionally, the company is in the process of creating a subscription package for customers that will allow them to access premium features such as delivery scheduling and receiving notifications when new gifts arrive.

Afloat currently has over 30,000 users. It is backed by Goodwater Capital and Techstars, with over $5 million in total funding.