Clutter

Market position

Clutter is one of the largest technology-enabled, full-service storage providers in North America, competing against traditional self-storage operators such as Public Storage — which had $2.6 billion in 2016 sales yet under 10% of industry revenue — in a sector estimated at roughly $30 billion annually in 2017 and about $38 billion for storage alone by 2022. Its closest startup rival, MakeSpace, was merged into Clutter in 2022, consolidating a fragmented market. The company was valued at about $240 million in 2017 and around $580 million at its 2019 round.

Clutter's differentiation rests on shifting the labor of storage from the customer to the company — door-to-door pickup, professional packing, per-item photo cataloging and item-level delivery — combined with proprietary warehouse and logistics software. An Atomico partner described that software as a defensive "moat." The company uses low-cost real estate outside city centers rather than urban units, employs its own drivers and handlers rather than gig workers, and has committed to not raising prices on stored items, in contrast to traditional operators that raised rates roughly 3% annually. Critics have argued the model adds complexity and cost; a Morningstar analyst questioned its underlying economics in 2017.

Technology

Clutter's operations are built on a barcode-based inventory system that links each stored package to an aisle and shelf and integrates with transportation scheduling and the customer's online photo catalog, letting staff know in advance what is arriving and where bulky items should go. The company has developed software to map unused warehouse space for denser packing and to predict which items customers will retrieve first, so frequently requested goods are stored closer to cities and rarely retrieved goods further out where land is cheaper. It has also explored video-based cataloging with machine-learning algorithms to generate automated estimates. Customers manage storage through an online account with per-item photos, scheduling and delivery windows.

Go-to-market

Clutter acquires customers directly online through free quotes and plan pricing on its website, supported by advertising and by branded partnerships with home-renovation and decluttering television programs. Growth has also come through consolidation: the merger with MakeSpace and acquisitions of The Storage Fox, Omni assets, and assets from Handy, Livible, Shed and Callbox expanded the footprint and removed overlapping competitors, which management said would reduce marketing and promotional spending in shared markets.

Consumers and households in major North American metropolitan areas who need storage during moves, downsizing or renovations, including customers seeking an alternative to renting and filling a self-storage unit themselves. The company also serves media production clients needing storage and moving for home-transformation programming.

Geography

Clutter operates across the United States and in Toronto, Ontario, with warehouses located outside city centers. Listed markets include Los Angeles, Orange County, San Diego, the Inland Empire, Fresno and the Bay Area in California; New York City (Manhattan, Brooklyn, Queens, the Bronx), New Jersey, Boston, Philadelphia, Pittsburgh, Baltimore, Washington DC, Alexandria and Arlington; Miami, Orlando, Jacksonville and Tampa Bay; Houston, Dallas, Austin and San Antonio; plus Chicago, Seattle, Denver, Phoenix, Detroit and Nashville. In 2017 the company operated in seven markets. Following the 2022 MakeSpace merger, the combined business was described as serving roughly 6,500 U.S. towns covering about 60% of the population, with operations in Canada.

History

Ari Mir and Brian Thomas became interested in storage in 2013 after Thomas's mother's storage provider raised her rate twice in one year, and spent about two years developing the concept before launching Clutter in 2015. By August 2017 the company had more than 10,000 customers, roughly $8 million of 2016 revenue, seven markets and $97 million raised at an estimated $240 million valuation. In 2019 it raised a $200 million round led by SoftBank at a valuation of about $580 million, acquired The Storage Fox for $152 million and bought assets from the failed storage startup Omni, later adding assets from Handy, Livible, Shed and Callbox. In February 2022 Clutter merged with rival MakeSpace in an all-equity transaction; the combined company kept the Clutter brand, with Mir as CEO and MakeSpace's Rahul Gandhi as president, and management said it expected close to $200 million in annual revenue, break-even in 2022 and a possible IPO in 2023. The company now markets itself as backed by Iron Mountain.

Risks & controversies

Analysts have questioned the economics of the model: a Morningstar analyst said in 2017 that the business economics "aren't there," arguing the approach adds complexity and cost relative to conventional self-storage. Clutter itself acknowledged it is not always cheaper than incumbents. As of 2022 the company was profitable only in its larger markets, with the MakeSpace merger intended to reach positive unit economics more broadly, and a stated plan to IPO in 2023. Coverage of MakeSpace prior to the merger described an uneven funding trajectory.