Jeff Bezos backs Doxo to help create a 'paperless' society - eBilling News | EBPP

Jeff Bezos backs Doxo to help create a 'paperless' society

on Friday 14 May 2010

By John Cook - Techflash

A few months ago we uncovered details about Doxo, a stealthy Seattle startup led by former Qpass executives which had raised $5.25 million in new venture financing. At the time, CEO Steve Shivers didn't want to say what they were working on. But now the company, which employs about 20 people, is sharing details for the first time. It is also disclosing that Jeff Bezos' venture capital firm, Bezos Expeditions, is an investor in the company along with Mohr Davidow Ventures.

So, what's Doxo doing? The company today is announcing a new online service that helps consumers get rid of the paper bills that typically clutter the mailbox. At the same time, it wants to help corporations save money by eliminating paper waste. In fact, Shivers said he came up with the idea for Doxo on a trip to the mailbox a few years ago when he realized that billing statements were mixed in with junk mail. There had to be a better way, he said.

"I walked back from the mailbox and I had about four pounds of paper in my hands," said Shivers. "It just struck me how absurd that was."

Shivers worked with major mailers before at Qpass, which had developed a mobile billing technology. So, in that regard, he knew there was a serious pain point. �For customers, all this paper mail is a big headache. For businesses, it�s enormous wasted expense," said Shivers. "Adoption is lagging so dramatically because clear, straightforward customer needs aren�t being met. Doxo is out to remedy that.�

Doxo isn't disclosing exactly how the technology will work or its trial customers, but the company isn't shy about discussing the problem of printed mail. Only about 12 percent of the estimated 55 billion transactional documents mailed in the U.S. each year are delivered electronically, the company said. That equates to postage, printing and paper waste of as much as $35 billion.

Shivers admits that there's been some "missed opportunities" in the past when it comes to the delivery of electronic billing statements. "Paperless has never gotten out of the very early adopter market," he says.

While Shivers has paid his bills electronically for more than a decade, the technology executive said that the average U.S. household has not adopted electronic billing because there are simply too many billing providers. "We believe that paperless adoption can be three, four, five times higher than present levels," he said.

Doxo plans to sell its Web-based service directly to enterprise customers like mobile carriers, banks and utilities. He didn't offer pricing information or explain how Doxo is unique from the paperless billing systems already in place at many providers.

However, he did say that there's an opportunity to consolidate electronic billing information across multiple providers in one location for the consumer. In terms of businesses, he said that they can save $40 to $75 on each customer that switches from printed mail to {tag electronic mail.

But Shivers is still pretty cagey when it comes to disclosing details about how Doxo will actually work.

"You are not going to be able to get the exact insight on what makes us unique until we introduce the product," Shivers said. That won't be happening until later this year.

Other technology companies have attempted to revolutionize the postal mail business, including Seattle-based Earth Class Mail and Westlake Village, California-based Zumbox. Shivers said those companies are more focused on consumer services which convert physical mail into digital mail that is viewable online.

"That's not our model at all. We are a completely enterprise-funded business model," said Shivers, adding that Doxo never touches physical documents.

In addition to the company announcing Bezos Expeditions as an investor, Doxo also is disclosing its advisory board for the first time. That includes former Qpass executive Sterling Wilson; Zillow.com Chief Technology Officer David Beitel and Rick Thau of consulting firm Thaughtful Transitions.

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