Five year journey comes to an end as Scott Ruffin founded online delivery startup Pandion shuts down

Just ten months ago, Pandion, which was started in 2020 by former Amazon and Walmart executive Scott Ruffin, raised $41.5 million, with sales forecasted north of $200 million. But the parcel network designed for e-commerce residential delivery has now closed abruptly, after talks with potential acquirers and investors proved unsuccessful. Employees will be paid through to 15th January without severance.

In a LinkedIn post, Ruffin, the founder and former leader of Amazon Air., said: “This decision is profoundly personal for me. Five years ago, Pandion began as nothing more than an idea. Since then, we’ve achieved remarkable milestones. We generated tens of millions of dollars in revenue, built innovative technology from the ground up, and developed concepts and technology that advanced the operations industry, which will endure long after our journey ends.”

He added: “From delivering over 100,000 packages a day to developing world class technology, I’m immensely proud of everything we accomplished. While the outcome is not what we hoped for, I remain grateful for the incredible work and dedication that made these achievements possible.”

“My priority now is supporting our team as they navigate their next opportunities. As a former Marine who served during challenging times, I've faced many tests in life, but this is among the toughest because of how deeply I care about the Pandion team. My focus remains on helping them find their next roles in every way I can. Finally, to everyone who supported us along the way - partners, customers, and team members, advisors - thank you. Your belief in us has meant more than words can express.”

It will be interesting to see if someone acquires Pandion tech. Let us know your thoughts in the comments section below.

The aforementioned LinkedIn post also included the following memo sent by Ruffin to employees

“As we discussed in our last All Hands, we had runway through 2024 Q4 based on our last funding rounds. As many of you know, the leadership team and I have been speaking with many investors and several potential acquirers. We have spent the last month in daily discussions with these parties, including through the holidays. We have been very close to a deal several times. 

However, it has become clear to me and the board that those conversations have run their course without a favourable outcome. Due to our legal obligations to our lenders, our Board of Directors and I have decided that we must immediately shut down the company.   

Today is Pandion’s last day as an operating business. We’ve already cancelled inbound packages and will have no further pickups. For the minimal packages remaining at our facilities, we’ll have one last simplified dispatch to the postal service. 

As part of this process, Pandion will complete an assignment for the benefit of creditors. As a result, Wednesday, January 15, is everyone’s final day as an employee of Pandion. Your last paycheck through January 15 will arrive that day. Because we owe more than we have in the bank, we cannot provide a severance payment, even though you deserve more notice and a better outcome. I’m sorry. I take full responsibility for the series of decisions that led to this situation. I care about you, and [I] apologise this is the outcome.  

This is not how any of us were hoping or planning for this to end. What each of you have built is unquestionably amazing and will leave its mark on the industry well beyond our years. I believe in my heart of hearts that the power of markets and timing can serve as either a massive tailwind propelling the business forward or a massive headwind preventing a talented team like each of you from reaching ultimate success. In our case, we entered the market at a challenging time, and we needed more runway to scale, but the shift in funding availability and the US small parcel market has limited our chance to continue to grow.  

Effective Wednesday, I am no longer an employee of Pandion. My mission has now changed from Founder and CEO to a personal coach and mentor to any of you who desire help in your professional transition. I, and many others on the leadership team, are available to personally assist each and every one of you in finding your next roles.   

The People team will be reaching out to each of you on next steps. I wish this final All Hands could have been under much different circumstances, but I will always retain the pride and admiration for all that we built together.”

2024 RTIH INNOVATION AWARDS

Online delivery was a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering.