MakeSpace, the fastest growing on-demand storage company, and Iron Mountain Inc., the global leader in storage and information management services, recently revealed a new partnership to bring consumer storage services to 24 markets. As a part of this transaction, Iron Mountain will join a $30-million financing round for MakeSpace, and MakeSpace will acquire Stashable, Iron Mountain’s full-service, valet consumer storage business.
According to a prepared statement, this partnership combines MakeSpace’s technology platform for consumer storage with Iron Mountain’s storage, transportation and logistics operations. Additionally, MakeSpace will become a storage customer of Iron Mountain and deliver an initial 2.1 million cubic feet of consumer storage.
By providing financial and operational resources, this strategic partnership with Iron Mountain will help MakeSpace immediately scale to 20 new markets — including San Francisco, Boston, San Diego, Seattle, Philadelphia and Toronto — bringing the company’s total footprint to 24 markets. Iron Mountain’s network of facilities and operational resources give MakeSpace the opportunity to bring its best-in-class, scalable technology to new markets without the time and capital investment required. Iron Mountain’s capabilities will accelerate operational efficiencies for MakeSpace’s existing storage service locations in New York City, Chicago, Washington, D.C. and Los Angeles, as well as position MakeSpace to quickly scale into new markets in the future.
While one in 10 Americans currently uses self-storage, each year about 40 million Americans move at least once, and much of that includes moving to major cities. With urban apartment sizes shrinking by 5 percent, the need for storage will only continue to increase. To meet this need for storage space, MakeSpace has grown revenue by an average of 117% per year over the past 3 years, revolutionizing the storage category by building a truly customer-first integrated platform, powered by advanced technology. MakeSpace utilizes data and machine learning to provide a convenient and seamless self-storage experience. Through AI-driven algorithms, customers are able to store and retrieve their items on-demand, receive optimal pricing, easily schedule appointments, track their pick-ups in real time, leave reviews and tip through the app, and view a secure photo inventory of stored items. When applied to Iron Mountain’s extensive resource network, MakeSpace’s proprietary routing and workforce optimization technology will radically transform the growing $38 billion consumer self-storage industry.
“Iron Mountain provides a massive global storage footprint, along with decades of operational experience. When combined with our industry-leading proprietary technology, customer service and scalable go-to-market strategy, we have the opportunity to be operationally superior to competitors and exceed consumer demand for hassle-free storage,” said MakeSpace CEO Rahul Gandhi. “We’re thrilled to work with the leader in information management and secure storage as we work to achieve MakeSpace’s mission of making more space easily accessible to everybody.”
“We’re excited to join forces with MakeSpace on a consumer storage offering that will help change the market landscape,” said Deirdre Evens, executive vice president and general manager, Records & Information Management, North America, Iron Mountain. “Iron Mountain’s storage business has been built on securing and protecting valuable records and assets, a value proposition that can be extended into other categories and markets, from artwork, film and music assets to areas like consumers’ valued personal items. The combination of MakeSpace’s consumer storage brand and front-end customer platform with our operational scale, expertise managing the world’s most valuable assets, and brand promise of trust and security will allow us to deliver even more value for across our storage network.”
Iron Mountain currently has more than 1,450 facilities in approximately 50 countries.