On-demand Storage — An empty industry becoming a billion-dollar empire
Tags: Startup, Storage Industry, Logistics, Storage, Storeload

On-demand Storage — An empty industry becoming a billion-dollar empire

Image Source: Pexels

Talk about Oil, Agriculture, Technology, or any of the next big thing; it just may not be 5G, it’s the ever-growing demand for space.

Most humans are materialistic by nature; this is a fact! The reason is not rocket science; it’s because our desires grow daily. And to cushion our growing desires, our consumption habit tends to grow in line with our desires, especially in Nigeria, a nation which is largely a representative example of the African continent. Here, the measure of a man’s wealth is by how much possession he has. These possessions need to be stored and kept in a safe space. Any entity of ferrying goods or storing people’s belonging must be ready to offer needed assurance that clients’ belongings are safe. Only then would they be willing to pay for such a service.

Quite many of us have not come to realise that there’s a growing business in the on-demand storage industry. It has boomed over the last few years, but perhaps not in Africa and by extension. Nigeria. The large empty lands, unused/underutilized warehouses and idle parking spaces have become fundamental to the daily lives and activities of people today. The fact that people are migrating in droves to urban areas and making these places crowded is creating untold opportunities for on-demand storage business to thrive. And with the influx of human capital comes the need for more space.

A lot of people come in to start a small business, a tech startup, rent accommodation for their new families, find a space to park their cars, in fact, a large number of startups need more space for excess inventory. The old is retiring and leaving to a quieter place; most prefer moving back to their villages, creating more space for the young.

On-demand storage is hotter than ever as these changes have created a vacuum for more people to seek a safe and convenient space in storing their possessions. In the U.S., entrepreneurs have bought the vision and have seen the potential of on-demand storage. It’s on record that when the U.S. economy went into the great recession, the on-demand storage industry flourished while other businesses went under. For instance, during the recession of 2008, most of the startups that have become giants of late like Uber, Airbnb, WhatsApp, Venmo, Groupon, Pinterest, Slack etc. Even Microsoft founded in 1975 was still in the recession-era.

When any economy slides into a recession, companies shut down and sell. People lose jobs, and some might have to move. With reduced income status also comes the need to augment it to maintain a decent standard of living. And looking for that comes the need to co-share with others to spin in some income from idle assets. Some then see this as an opportunity and begin to explore it professionally to keep that income sustained. This is essentially how Uber and Airbnb grew within a short time frame.

Same goes for storage. Space is always never enough, especially in urban centres. For those who understand how to create an opportunity from a problem as recession necessitates, they key into demand for space for those who need impromptu.

Investors know this and so many key startups are evolving in the self-storage industry, bringing ideas and creativity that allow their users to enjoy a simpler and more convenient on-demand storage experience. Now, they can view their stored possessions online, schedule a convenient pick, and drop from warehouses to their destination, and vice versa, amassing millions of dollars of funding by so doing.

Companies like Clutter Inc., StoreLoad, Boxful, and Spacebox are notable startups that help people and businesses to digitize their static and mobile storage facilities into an on-demand self-storage service where anyone in need of them can with through the comfort of their smartphones buy up and use these economic spaces.

Demand for space continues to rise.

In the U.S., the storage unit industry is worth a whopping $38 billion with a steady expansion and growth since 2012. It’s a market that accommodates new investors and empowers existing players. Without a doubt, the convergence of both buyers and sellers and the growth being witnessed is worth an in-depth look. Undoubtedly, this is one industry that will keep rising exponentially as the years go by.

Image Source: Pexels

Today, people are migrating to more crowded urban areas. There is a shift in human resources, and a lot goes with this shift. People are moving to better employment, and this creates opportunities for space owners. A lot of people need space for their inventory.

This is where on-demand comes in, with just a few sellers available to service the much larger buyers, there are more consumers of space than there are suppliers, this creates room for more people to come on board.

A lot of people have empty spaces in their rooms, a large expanse of unused land, idle garages, in fact, people have less space and more possessions, and with the rise of on-demand storage, a solution is already at the tip of our fingers.

The Next Big Player

It’s no surprise that the on-demand storage industry is expanding into different parts of the world. In Europe, there are thousands of units with tenancy rates hitting around 80% since 2016, while in Asia, there is a steady rise in the number of storage units by at least 40%.

With the birth of StoreLoad in Nigeria, Africa is gradually coming into the picture, and her vast number of possessions and land is a strong indicator that she is going to be the next big player in the steady growth enjoyed by the on-demand storage industry.

Look out for us on social media we are always grooving there.

Twitter |Instagram |LinkedIn |Facebook