Ori Anavim on Disrupting Logistics with AI and Cloud Technology

In this interview, Ori Anavim, co-founder of Grasshopper Labs, shares his remarkable journey from Wall Street to revolutionizing the logistics industry. With a computer science and business background, Ori shares how his experiences at Citibank and his successful venture with Deliveright laid the foundation for Grasshopper Labs, an innovative AI-driven platform transforming transportation and warehousing operations.

Tell us about yourself and your business.

With a strong foundation in computer science (undergraduate degree) and business acumen (Master of Business Administration), my career began in the fast-paced world of Wall Street after immigrating to the United States from Israel in the early 2000s. For 15 years, I honed my skills leading one of Citibank’s largest foreign exchange platforms and research analytics teams. This experience ignited a passion for building efficient systems, ultimately leading me to co-found Deliveright in 2015. Deliveright is a nationwide, tech-driven solution for heavy goods delivery, aiming to revolutionize the industry through innovation.

The success of Deliveright hinged on a logistics platform we developed internally to optimize our heavy goods delivery operations. Recognizing the broader applicability of this platform, we founded Grasshopper in 2020. Grasshopper is a cloud-based platform that leverages artificial intelligence to streamline transportation and warehousing operations for businesses of all sizes. From final-mile delivery for retailers to less-than-truckload (LTL) and full-truckload (FTL) carrier solutions, Grasshopper empowers businesses to optimize their logistics networks and drive efficiency.

How does your business make money?

In line with many successful software-as-a-service companies, Grasshopper prioritizes user accessibility through a tiered subscription model. This approach allows businesses of all sizes to benefit from the platform’s functionalities, scaling monthly fees based on specific needs. Additionally, we cultivate a robust app store within the Grasshopper platform. Here, customers can access a growing range of complementary services and integrations, further extending Grasshopper’s value proposition and generating additional revenue streams for our company.

What was your inspiration for starting the business?

Deliveright’s success in the heavy goods delivery landscape highlighted a gap in the market. While many companies were tackling the complexities of “final-mile” delivery for smaller parcels, the world of bulky and specialized items remained fragmented and inefficient. This realization became the driving force behind Grasshopper. We saw an opportunity to revolutionize logistics with a comprehensive first-to-final-mile solution specifically designed for these challenging goods, equipping businesses to significantly enhance their supply chains.

How and when did you launch the business?

Grasshopper’s origins lie in the innovative solutions developed for Deliveright. Initially, the platform served exclusively as an internal tool, optimizing heavy goods delivery within the Deliveright network.

However, Grasshopper’s transformative impact quickly became readily apparent. We recognized a vast, underserved market — a logistics landscape fragmented for bulky and specialized goods, lacking the efficiency offered by Grasshopper’s capabilities.

This realization and the growing demand fueled the decision to spin off Grasshopper as a standalone solution in 2020. By launching Grasshopper as a separate entity, we aimed to empower a wider range of businesses and revolutionize the logistics industry.

How is the business funded? 

Leveraging Deliveright’s initial success, Grasshopper has taken a self-funded approach. This bootstrapping strategy allows us to maintain complete control over the company’s vision and direction while fostering a culture of resourcefulness and innovation. As Grasshopper scales and disrupts the logistics landscape, we may explore additional funding avenues to fuel further growth and development.

How did you find your first few clients or customers?

Grasshopper’s initial customer acquisition strategy capitalized on the power of word of mouth. Within the first three years, our user base grew organically as satisfied logistics network customers and partners enthusiastically shared their experiences. Grasshopper’s core focus, the network-of-network effect, resonated with these early adopters.

This innovative feature empowers users to manage deliveries seamlessly across partner networks that utilize Grasshopper, fostering collaboration and driving further platform adoption. The value proposition is so compelling that some large corporate customers even encourage their partners to migrate from existing systems to Grasshopper, solidifying our foothold within the industry.

What was your first year in business like?

Grasshopper’s first year was a whirlwind of innovation, learning, and adaptation. Coming off the success of the internal platform at Deliveright, we entered the market brimming with excitement.

However, the initial months were a baptism by fire. We encountered a fair share of challenges — experiments that didn’t quite work as planned, setbacks, and the inevitable rejections of launching a new business. These experiences, however, proved invaluable.

We adopted a flexible and iterative approach, constantly learning from customer feedback and market demands. This agility allowed us to pivot quickly, fine-tuning the Grasshopper platform to better address our target audience’s specific needs and pain points.

By embracing a “fail-fast, learn-faster” mentality, we emerged from that first year with a more robust product-market fit and a resolute determination to revolutionize the logistics industry.

What strategies did you use to grow the business?

Grasshopper’s initial growth strategy focused on two key pillars: forging strategic partnerships and pioneering innovative solutions. Recognizing the fragmented nature of the logistics landscape, we actively cultivated partnerships with complementary businesses. These alliances allowed us to extend our reach and introduce Grasshopper to a broader customer base.

By strategically aligning with companies serving similar industries or addressing adjacent parts of the supply chain, we gained access to new networks and potential customers who might not have been readily identifiable through traditional marketing channels. This collaborative approach fostered a win-win scenario, allowing Grasshopper and our partners to harness each other’s strengths and expand our respective markets.

However, we understood that partnerships alone wouldn’t be enough to disrupt the status quo. Grasshopper’s true differentiator came from its unwavering commitment to technological innovation. Our team embraced a forward-thinking approach, constantly pushing boundaries and developing solutions that didn’t exist before. This strategy included leveraging cutting-edge AI and automation technologies to streamline processes and optimize logistics networks.

While deploying untested solutions carries an inherent risk, we ultimately captured the attention of customers eager to move beyond the limitations of traditional logistics methods. Our willingness to break industry norms and embrace groundbreaking technologies proved to be a powerful driver of customer acquisition and business growth in the long run.

What was the biggest challenge you had to overcome?

Grasshopper’s journey hasn’t been without its hurdles. Building a strong and adaptable team has been an ongoing challenge as with any growing company. In the early stages, we relied heavily on a core group that wore many hats and excelled in a fast-paced environment. However, as Grasshopper matured and our goals became more ambitious, we recognized the need to strategically expand our team.

The biggest challenge was identifying and attracting the right talent — individuals with the specific skill sets and experience necessary to propel us forward. We implemented a rigorous recruitment process, prioritizing technical expertise, a strong cultural fit and a shared passion for innovation. Building a team that can achieve our current goals and evolve and adapt alongside the company’s growth trajectory remains critical for Grasshopper’s continued success.

What have been the most significant keys to your business’ success?

We attribute Grasshopper’s success to several key factors, but our team’s unwavering dedication and collaborative spirit are at the heart of it all. From the beginning, we’ve fostered a culture where every member, regardless of department, feels invested in the company’s goals.

This collaborative approach fosters open communication and a willingness to support each other’s initiatives. Yes, we celebrate individual successes, but the ultimate focus remains on achieving the next short-term milestone within our long-term strategic vision. This laser focus on immediate needs and long-range objectives keeps us constantly moving forward while ensuring we stay aligned with the bigger picture.

Working together as a cohesive unit, our team has effectively navigated challenges, capitalized on opportunities and propelled Grasshopper toward its current position within the logistics industry.

Tell us about your team.

A passionate and talented team of roughly 22 individuals working in-house across various departments fuels Grasshopper’s success. Our R&D team spearheads our commitment to continuous innovation, constantly pushing boundaries and developing cutting-edge solutions that keep Grasshopper at the forefront of the logistics technology landscape. Our product development team works hand-in-hand with R&D, meticulously translating those innovative ideas into user-friendly and practical features within the Grasshopper platform.

Our marketing and business development departments round out the core team. The marketing team is instrumental in spreading the word about Grasshopper’s transformative capabilities, while the business development team cultivates valuable partnerships that expand our reach and fuel our growth. By fostering a collaborative environment where these diverse skill sets come together, our in-house team ensures Grasshopper remains agile, innovative, and well-positioned to revolutionize the logistics industry.

How did you make the transition from side hustle to full-time?

Recognizing the potential of Grasshopper wasn’t enough. There came a critical juncture before we’d gained significant momentum but felt a strong sense of promise, where a crucial decision loomed.

For Grasshopper to truly thrive, a full-time commitment was necessary. This responsibility meant taking a leap of faith and dedicating all my focus and energy to nurturing this groundbreaking platform.

Making the transition was a calculated risk, but the combined passion and dedication of the entire Grasshopper team fueled a strong belief in the venture’s potential. Looking back, this decision proved pivotal in setting the stage for Grasshopper’s growth and success.

What was the turning point when you knew your business was successful?

Grasshopper’s journey toward success hasn’t been marked by a single defining moment but a series of milestones that collectively pointed us in the right direction. However, securing our first major client — a public company — was a significant turning point. Landing a customer of that caliber validated our approach and demonstrated the scalability and robustness of the Grasshopper platform. The engagement signified that we were no longer a niche player but a serious contender in logistics technology.

This success story fueled a wave of momentum, attracting other high-profile clients and further solidifying Grasshopper’s position as a leader in the industry.

What is the most important lesson you’ve learned growing the business?

Growing Grasshopper has been a continuous learning experience, but perhaps the most valuable lesson centers around tackling complex challenges and embracing a customer-centric approach. We consciously decided to focus on a difficult problem — streamlining logistics for bulky and specialized goods. This complex challenge pushed us to constantly innovate and experiment, developing cutting-edge solutions through a rigorous testing process. However, innovation wouldn’t be enough without a deep understanding of customer needs.

We prioritize active listening, constantly seeking feedback and suggestions from our users. After all, our customers are the ones navigating the challenges we’re trying to solve. By truly understanding their pain points and incorporating their insights, we can ensure that Grasshopper remains an effective and user-friendly platform. This commitment to tackling complex problems, fostering a culture of experimentation, and prioritizing customer feedback propels Grasshopper forward.

What separates your business from your competitors?

Many logistics software companies develop solutions from a distance, often lacking the real-world perspective of those who use them daily. We took a different approach at Grasshopper, building our company from the ground up inside a warehouse. Our developers weren’t just writing code. They were loading trailers, driving trucks, and working alongside warehouse personnel, gaining firsthand experience and a deep understanding of these workers’ daily challenges.

Our technology reflects this commitment to real-world experience. Grasshopper isn’t just another piece of software—it’s a comprehensive end-to-end solution that eliminates businesses’ need to cobble together multiple solutions from various vendors. By understanding the specific needs of warehouse employees and drivers, we can develop a platform that streamlines operations and makes their jobs easier and more efficient. Grasshopper effectively bridges the gap between technology and real-world logistics, delivering a solution that truly understands the industry it serves.

What advice do you have for other entrepreneurs?

Throughout my career, I’ve learned some valuable lessons the hard way. One of the most important is the necessity of quantifying and measuring the value you deliver to your customers. If you can’t clearly demonstrate your product’s positive impact on their bottom line, you might be offering the wrong solution.

Here’s the key: Customers need to grasp the return on investment (ROI) quickly and effortlessly. Don’t make them guess how your product benefits them. Present clear metrics and data that showcase the positive impact on their business and shift the focus away from a traditional sales pitch. When the value proposition is undeniable, the product essentially sells itself. Focus on building a solution that demonstrably improves your customers’ efficiency, saves money or streamlines their operations. Let the results speak for themselves, and watch your business flourish.

What is your favorite quote?

While in the military, I encountered a quote that has become a guiding principle for me, personally and professionally: “The compromises of today are the norms of tomorrow.” This simple statement holds immense power. It reminds us that the standards we accept today can easily become the baseline for the future.

At Grasshopper, this philosophy translates to a constant push for innovation. We don’t settle for the status quo but strive to redefine what’s considered “normal” within the logistics industry. By embracing calculated compromises —  exploring new technologies and developing groundbreaking solutions — we aim to establish new benchmarks for efficiency and optimization. Just as the military demands adaptability and a willingness to evolve, Grasshopper embodies that spirit. We are constantly challenging how things have always been done, intending to shape a future where our innovative solutions become the new standard in logistics.

What are your future plans for the business?

Our vision for Grasshopper extends far beyond the borders of the domestic market. We’re actively engaged in strategic planning to expand Grasshopper internationally, leveraging our innovative platform and expertise to address the logistical challenges businesses worldwide face. By entering new markets, we aim to broaden our customer base and gain valuable insights from diverse industries and operational environments. This global perspective will further fuel our innovation engine, allowing us to refine the Grasshopper platform to deliver an even more comprehensive and universally applicable solution.

If you had to start from scratch, where would you begin?

Hindsight is a powerful tool, but Grasshopper’s journey has shaped our approach. If starting anew, the core principles remain — identify a critical industry challenge and prioritize deep user empathy. Building a solution that directly tackles those pain points — that’s the key.

We’d also leverage the power of data and analytics from the outset. Solid data showcases a clear return on investment for our customers. Imagine a restart fueled by Grasshopper’s experience — sharper, data-driven and even more passionate about creating a truly impactful business! That’s an exciting prospect.

What are some of your favorite books, blogs, podcasts, or YouTube channels?

While my focus on Grasshopper and the logistics industry consumes much of my time, I’ve enjoyed several resources and found them particularly insightful during downtime. On the book front, I’ve gotten a lot out of classics like “Never Split the Difference” by Chris Voss, which offers valuable negotiation strategies, and “How to Win Friends and Influence People” by Dale Carnegie — a timeless guide to effective communication and relationship-building.

As for podcasts, I recently enjoyed “13 Minutes to the Moon,” a captivating miniseries that delves into the historic Apollo 11 mission. The podcast is a great reminder of the power of innovation and teamwork in achieving seemingly impossible goals.