Using DoorDash to deliver lunch to the jobsite is nothing new. But what if contractors could order a compact track loader the same way they can order a burrito?
Online equipment rental marketplace Downstream recently secured $8 million in Series A funding to finance that growing reality in the U.S.
Zach Irwin, founder and CEO of Downstream, says contractors can think of their service as an equipment-focused version of DoorDash. The company’s online platform connects end users with local or national equipment suppliers and facilitates the entire rental process digitally.
Downstream users and suppliers can manage procurement, payments, billing and more through the platform and its accompanying mobile app. Contractors will find options to rent compact equipment, earthmoving equipment, toilets, dumpsters, storage containers, and many other items on the platform.
The original idea for Downstream stemmed from a previous business venture in the waste management industry, says Irwin.
“Our founders, we used to be the supplier, and we had our own waste management service business,” Irwin says. “And we were like, ‘This is silly. Why can we not transact digitally?’ And we saw there's barriers in the data, the way the transactions are super complicated, you have to really understand the industry to transact digitally.”
Irwin stresses the transparency built into the platform when contractors are renting. When selecting a dumpster, for example, users can not only see which supplier will offer the lowest cost, but which ones will charge different rates for tonnage and easily compare to find the best fit for their particular jobsite.
“We're able to save contractors time and money by having all the sourcing and procurement done here, as well as we go through and do vendor checks,” says Irwin. “All these people are credentialed. They have the right insurance.”
Once an order is placed on Downstream, Irwin says contractors will be notified of the accepted rental from the suppliers within minutes, after which the equipment is brought to the jobsite.
Users can manage their rented equipment by jobsite as well and easily transfer that equipment between locations or request removals through the platform, which will record agreements and invoices for contractors to access as well.
Construction is the main industry demographic for Downstream, including utilities and home building. A big part of Downstream’s business, however, has been with national companies managing rentals from dozens of suppliers.
“I have 20 projects going on this month, and I need five different vendors at each one of those projects,” Irwin says. “That’s 100 points of contact that I'm going to have to manage just to get my equipment and Dumpsters and Porta Potty service. And now you extrapolate that out, and I get another 20 next month with new projects like it just continues to compound.”
While it’s not their main focus, Irwin says they’ve facilitated rentals for equipment as large as articulated dump trucks and 185-foot cranes. The sweet spot of their businesses remains roll off Dumpsters, porta potties and scissor lifts. But if a contractor needs a machine that can’t be found on Downstream’s marketplace, Irwin says their team will have three quotes back within an hour after receiving the request.
A key attraction of Downstream for smaller equipment suppliers, says Irwin, is the ability to “build their brand” by reaching customers who might normally never find them. He gives example of a contractor looking to rent a Dumpster.
“You go on Google, and you hit a bunch of national brands,” he says. “But if you need a roll off dumpster in Denver, there's probably 30-35 people that we have that can help you with that dumpster."
“Our goal on the supplier side is to…help them build loyalty, help them take care of all the things that they're not good at, which is legal compliance, billing, customer support.”
Currently, Downstream works with over 1,000 supplies operating out of roughly 5,000 locations.
