Interviews

Podcast

"I was at the salary level where it was now or never"

28.8.2023

The man who wants to give DHL, Hermes and the like a run for their money reports directly from his Berlin apartment. However, Ben Stolze actually sees his logistics start-up Urbify more as a supplement to the existing range of shipping companies. The company offers same-day or next-day delivery of parcels for online stores, with an unusually high delivery rate. In this interview, he talks about what makes his company special, why he is still not a fan of the consumer society and what role the father of a fellow student played in his company.

Mr. Stolze, what have you done recently?

The most recent purchase was a bike, a fixie to be precise. I also treated myself to a long vacation. Basically, consumption is not that important to me. There are two things I like to spend money on: Vacations and food. I would describe myself as a "foodie" who sometimes likes to go to Michelin-starred restaurants.

Did consumption play a major role in your youth?

I wouldn't say that. I grew up in a middle-class, privileged environment. Looking back, I realize that many people underestimate how well off they actually are. But money was never a big issue in our family. We were relaxed about it.

So you yourself are not a consumerist, but your company Urbify is already fueling the consumer society with its next-day delivery.

I am of course aware of the contradiction. But I can certainly resolve it for myself. For example, I think guaranteed delivery within ten minutes is nonsense, and I also think same-day deliveries are difficult, except for a few product categories. Not only for moral reasons: The providers in the market who propagated this "faster, faster, faster" are all either bankrupt or sold by now. However, I think next-day delivery is justifiable, as it is economically worthwhile for the logistics provider and provides the customer with the desired convenience.

As a customer yourself, would you insist on next-day delivery?

I'm personally quite impatient, but not necessarily. I didn't found Urbify to solve a personal problem of mine, that was never my motivation.

What motivated you instead?

I always had the idea of founding a company at some point in the back of my mind. Even as a student, I bought contract-free iPhones in the Benelux countries and the UK and resold them in Germany, where there were no such contract-free offers at the time.

Why didn't you stick with it?

I wanted to do a doctorate first, which was easier in combination with a permanent position, which I then got at Volkswagen. I was already working on the topic of smart mobility there, and later I moved to Porsche Consulting, where I also worked a lot on the future of mobility.

You probably earned quite well there too. Why did you quit?

I was slowly reaching a salary level where it was becoming increasingly difficult to justify to myself that I was leaving that behind and building up a company again. So it was clear to me: now or never. As I didn't have any major commitments - such as children - 2021 was the perfect time.

Why did you have this deep desire to start up? Was there a role model that inspired you?

There were various people, but if I had to single out one, it would be the father of a fellow student. He had a medical technology company and was very successful in this field. He always said: never make a decision against the employees and for a quick buck.

That sounds like a very classic entrepreneurial approach, which is rather unusual in the start-up sector.

But it had a huge impact on me. We bootstrapped Urbify for a long time, i.e. we financed it from our own funds without venture capitalists. As a result, my relationship to my company is different to that of other founders. I still own over 50 percent, there is no investor who has taken over the majority.

The logistics sector is not necessarily the most glamorous industry. What interested you about it?

My last project at Porsche Consulting was in the logistics sector. Now I'm not an expert, but I quickly realized that: A large part of the logistics world consists of partner management between companies and logistics providers, between logistics providers and recipients and so on. However, this often makes it difficult to ensure quality and transparency.

And you want to change that with Urbify and how exactly?

First of all: we don't do fulfillment like many other logistics providers, we really only take care of shipping. Online stores that connect us as a service can accept orders until midnight, which we then deliver the next day in twelve German metropolitan regions. This means that we receive the parcels from the shipping company at 3 or 4 in the morning. Why is that so important? The majority of sales, especially in e-commerce, take place in the evening. We accept all orders placed before midnight and deliver them the following day. Other providers collect the shipments from the store's warehouse at 5 p.m. the day before, so of course a lot of things fall by the wayside and are only delivered two or three days after the order is placed.

And then it reaches the recipient on the same day that Urbify accepts it?

That's exactly the plan. Our delivery window is between 4 and 9 p.m., i.e. at a time when most people are at home. We also provide a very precise forecast so that recipients can prepare for the delivery. Ultimately, we offer greater transparency and reliability than many other logistics providers. And also better quality. We deliver 99 percent of consignments on the first attempt.

And you want to outstrip DHL with this?

No, we can't compete with them. They have much lower costs per parcel due to the sheer volume. And it also has to be said: given the volume of shipments that these large carriers handle, the quality is still pretty good. We simply offer more speed and service than premium carriers, which is our unique selling point that clearly sets us apart.

In the logistics sector in particular, there is a lot of abuse and employees who are exploited. How do you ensure that you make decisions "for the employees and not for a quick buck", as your entrepreneur role model put it?

We also have partners, i.e. subcontractors. However, we attach great importance to etiquette, for example ensuring that all social security contributions are paid and that payment targets are met for employees.

Working hours and deliveries that are too heavy are also frequent causes for complaint.

We also pay close attention to this. Thanks to our delivery window, the working hours are fortunately quite clearly limited. And as far as the delivery weight is concerned: I take great care to ensure that there is no tour that I wouldn't drive myself.

Last year, you brought an investor on board for the first time. Is this the beginning of your departure from Urbify?

No, not at all. We have thought this through carefully, and with the investor we can now expand further. Geographically, of course, but also in other areas: We want to further electrify our vehicle fleet, enter into partnerships with comparable providers in other countries, and we are also looking at the topic of artificial intelligence (AI).

Thank you very much for the interview.

Personal details: Ben Stolze is CEO of Urbify, the start-up that he also founded in 2021. He previously worked in the New Mobility division for Porsche Consulting and on digitalization projects at Volkswagen. Stolze studied in Münster and Maastricht and holds a doctorate in Information Management.

"I was at the salary level where it was now or never"

Interviews

"I was at the salary level where it was now or never"

28.8.2023

Lars-Thorben Niggehoff

Urbify founder Ben Stolze talks about the idea behind his logistics start-up, his problems with instant deliveries and the difficult decision of when to become a founder.

The man who wants to give DHL, Hermes and the like a run for their money reports directly from his Berlin apartment. However, Ben Stolze actually sees his logistics start-up Urbify more as a supplement to the existing range of shipping companies. The company offers same-day or next-day delivery of parcels for online stores, with an unusually high delivery rate. In this interview, he talks about what makes his company special, why he is still not a fan of the consumer society and what role the father of a fellow student played in his company.

Mr. Stolze, what have you done recently?

The most recent purchase was a bike, a fixie to be precise. I also treated myself to a long vacation. Basically, consumption is not that important to me. There are two things I like to spend money on: Vacations and food. I would describe myself as a "foodie" who sometimes likes to go to Michelin-starred restaurants.

Did consumption play a major role in your youth?

I wouldn't say that. I grew up in a middle-class, privileged environment. Looking back, I realize that many people underestimate how well off they actually are. But money was never a big issue in our family. We were relaxed about it.

So you yourself are not a consumerist, but your company Urbify is already fueling the consumer society with its next-day delivery.

I am of course aware of the contradiction. But I can certainly resolve it for myself. For example, I think guaranteed delivery within ten minutes is nonsense, and I also think same-day deliveries are difficult, except for a few product categories. Not only for moral reasons: The providers in the market who propagated this "faster, faster, faster" are all either bankrupt or sold by now. However, I think next-day delivery is justifiable, as it is economically worthwhile for the logistics provider and provides the customer with the desired convenience.

As a customer yourself, would you insist on next-day delivery?

I'm personally quite impatient, but not necessarily. I didn't found Urbify to solve a personal problem of mine, that was never my motivation.

What motivated you instead?

I always had the idea of founding a company at some point in the back of my mind. Even as a student, I bought contract-free iPhones in the Benelux countries and the UK and resold them in Germany, where there were no such contract-free offers at the time.

Why didn't you stick with it?

I wanted to do a doctorate first, which was easier in combination with a permanent position, which I then got at Volkswagen. I was already working on the topic of smart mobility there, and later I moved to Porsche Consulting, where I also worked a lot on the future of mobility.

You probably earned quite well there too. Why did you quit?

I was slowly reaching a salary level where it was becoming increasingly difficult to justify to myself that I was leaving that behind and building up a company again. So it was clear to me: now or never. As I didn't have any major commitments - such as children - 2021 was the perfect time.

Why did you have this deep desire to start up? Was there a role model that inspired you?

There were various people, but if I had to single out one, it would be the father of a fellow student. He had a medical technology company and was very successful in this field. He always said: never make a decision against the employees and for a quick buck.

That sounds like a very classic entrepreneurial approach, which is rather unusual in the start-up sector.

But it had a huge impact on me. We bootstrapped Urbify for a long time, i.e. we financed it from our own funds without venture capitalists. As a result, my relationship to my company is different to that of other founders. I still own over 50 percent, there is no investor who has taken over the majority.

The logistics sector is not necessarily the most glamorous industry. What interested you about it?

My last project at Porsche Consulting was in the logistics sector. Now I'm not an expert, but I quickly realized that: A large part of the logistics world consists of partner management between companies and logistics providers, between logistics providers and recipients and so on. However, this often makes it difficult to ensure quality and transparency.

And you want to change that with Urbify and how exactly?

First of all: we don't do fulfillment like many other logistics providers, we really only take care of shipping. Online stores that connect us as a service can accept orders until midnight, which we then deliver the next day in twelve German metropolitan regions. This means that we receive the parcels from the shipping company at 3 or 4 in the morning. Why is that so important? The majority of sales, especially in e-commerce, take place in the evening. We accept all orders placed before midnight and deliver them the following day. Other providers collect the shipments from the store's warehouse at 5 p.m. the day before, so of course a lot of things fall by the wayside and are only delivered two or three days after the order is placed.

And then it reaches the recipient on the same day that Urbify accepts it?

That's exactly the plan. Our delivery window is between 4 and 9 p.m., i.e. at a time when most people are at home. We also provide a very precise forecast so that recipients can prepare for the delivery. Ultimately, we offer greater transparency and reliability than many other logistics providers. And also better quality. We deliver 99 percent of consignments on the first attempt.

And you want to outstrip DHL with this?

No, we can't compete with them. They have much lower costs per parcel due to the sheer volume. And it also has to be said: given the volume of shipments that these large carriers handle, the quality is still pretty good. We simply offer more speed and service than premium carriers, which is our unique selling point that clearly sets us apart.

In the logistics sector in particular, there is a lot of abuse and employees who are exploited. How do you ensure that you make decisions "for the employees and not for a quick buck", as your entrepreneur role model put it?

We also have partners, i.e. subcontractors. However, we attach great importance to etiquette, for example ensuring that all social security contributions are paid and that payment targets are met for employees.

Working hours and deliveries that are too heavy are also frequent causes for complaint.

We also pay close attention to this. Thanks to our delivery window, the working hours are fortunately quite clearly limited. And as far as the delivery weight is concerned: I take great care to ensure that there is no tour that I wouldn't drive myself.

Last year, you brought an investor on board for the first time. Is this the beginning of your departure from Urbify?

No, not at all. We have thought this through carefully, and with the investor we can now expand further. Geographically, of course, but also in other areas: We want to further electrify our vehicle fleet, enter into partnerships with comparable providers in other countries, and we are also looking at the topic of artificial intelligence (AI).

Thank you very much for the interview.

Personal details: Ben Stolze is CEO of Urbify, the start-up that he also founded in 2021. He previously worked in the New Mobility division for Porsche Consulting and on digitalization projects at Volkswagen. Stolze studied in Münster and Maastricht and holds a doctorate in Information Management.

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About the author

Lars-Thorben Niggehoff

"I was at the salary level where it was now or never""I was at the salary level where it was now or never"

Lars-Thorben Niggehoff writes about real estate, start-ups and investing.

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