Doorage Storage is buying Boston on-demand storage as part of its plan to expand pickup and delivery services in the Northeast.
Meanwhile, Chicago-based Doorage, founded five years ago, is launching new services in Las Vegas and Columbus, OH as it tries to expand its reach nationwide.
Sean Sandona, Founder and CEO of Doorage, said the takeover of On Demand Storage, one of the Boston-area’s largest valet storage providers, is his company’s first major acquisition outside the region. from Chicago.
Among other things, the deal will allow Doorage to tap into Eastern Massachusetts’ large student, residence and small business customer base, he said. Additionally, Doorage will take control of two on-demand storage facilities in the Boston area, helping it serve much of the New England and New York area markets.
A massive move
“It’s huge for us,” Sandona said of Doorage’s push in Boston. “This is a massive move from Doorage. It helps solidify our operations on the East Coast.
Terms of the Doorage-On Demand deal were not disclosed. The transaction is expected to close in the second quarter of 2022, Doorage said in a statement.
Until now, Doorage, with 35 full-time employees and 18 trucks, has focused primarily on providing full-service to those in Chicago, Milwaukee, and Madison, WI, picking up items from customers’ homes or businesses, storing them and then moving them, if necessary, anywhere in the United States
Now, the Boston area will become a “full-service marketplace,” providing local customers with pick-up, storage, and moving options.
Sandona said privately held Doorage is in merger talks with other storage players across the county.
“We have entered into several acquisition agreements with traditional and valet companies and we look forward to completing the transition of merging customers, teams and systems, but Boston is our primary focus at this time,” a- he declared. “We have two big targets on the radar after this round of acquisition and expansion.”
Let the competition begin
With its entry into the Boston market, Doorage will face a number of rivals also looking to tap into the large student market in eastern Massachusetts, such as Storage Squad.
Last year, 1-800-PACK-RAT/Zippy Shell, known for its on-premises storage container business, purchased Storage Squad, aiming to expand its student-run valet business in Boston and around all the countries.
“Boston is a great market – and it’s growing fast,” said James Burati, senior vice president of sales and marketing for 1-800-PACK-RAT/Zippy Shell. “We definitely see Storage Squad expanding.”
Burati said his company plans to keep Storage Squad focused on students, not other customer segments in the storage market.
As for Doorage, it is also launching operations this winter in Las Vegas and Columbus, Ohio, providing customers in those markets with full pick-up, storage and moving services, Sandona said.
By the end of 2022, Doorage will offer local service in six markets: Chicago, Milwaukee, Madison, Boston, Las Vegas and Columbus. Next year, Sandona said Doorage will focus on establishing full pick-up, storage and moving services in the New York area.
“The Boston market has always been a target for our team and was one of our last stops before moving to NYC services,” he said.
Finally, Sandona, who declined to identify his company’s investment partners, said Doorage would like to be present in about 30 to 40 markets across the country.