A NEW TYPE OF PETAL PUSHER
For floral start- ups, plain roses are so yesterday
The LOS ANGELES new way to “say it with flowers” may be tapping a flash sale for organic cactus. A crop of tech start- ups aims to marry the tradition of sending flowers to loved ones with a new generation’s passion for artisan products, ordering via smartphone and fast delivery. Los Angeles- based Bouqs, backed by $ 43 million in venture capital, touts flowers that are grown in environmentally friendly conditions and come to consumers direct from the farm. Santa Monica, Calif.- based BloomNation, which has raised just over $ 7 million, sends flowers handcrafted by local, artisan florists. And BloomThat, a San Franciscobased website and app also backed by $ 7 million in funding, targets Millennials with its burlap- wrapped bouquets. The flower business used to be “down market and price- driven, and we want to make it more special,” Bouqs co- founder John Tabis says. Delivery prices range from free to around $ 15 for overnight or same- day delivery, to even more depending upon location and how soon you need it. It was only a matter of time be- fore online delivery apps targeted the flower- ordering market, where the offerings usually are hyperlocal ( try to find a florist in mom’s town, then call them) or national but offering more standard choices, such as a dozen roses with baby’s breath ( 1800- Flowers, Teleflora).
“It’s an outdated market,” says Farbod Shoraka, co- founder of BloomNation. “Ripe for disruption.”
The industry is worth $ 7 billion and is likely to grow 2% this year, helped by online sales, according to market research firm Ibisworld.
But local florists are hurting, and their numbers are dropping. The Society of American Florists says there were 13,765 florists in 2014, its most recent statistic.
It’s not a given these start- ups will succeed. App- based delivery companies in other niches, say food delivery, have struggled with costs and difficulty when it comes to scale. And the floral start- ups are in direct competition with Amazon, whose huge logistics infrastructure allows it to keep delivery costs low, as well as supermarkets, which sell flowers at roughly half the price of the start- ups. They also compete with long- established brands such as 1- 800- Flowers and ProFlowers that also work with a network of florists and can offer discounted prices.