Co-Founder Franz Purucker on Taking Hive to the UK

In 2023, Hive kicked off operations in the UK headed up by Co-Founder and MD Franz Purucker.

With the year coming to a close, we sat down with him to reflect on:

• His new challenges in leading Hive’s UK expansion
• What makes the market different from other EU countries
• Where Hive stands in the competitive market
• Highlights and challenges of new market expansion
• Franz’s favorite thing about UK life

As a Co-Founder, you have been leading teams across multiple functions in the company - from commercial teams like business development to running operations of the fulfillment centers in Berlin. How have you been finding this new challenge taking on the UK expansion?

It is one of the most exciting hats that I’ve taken on recently as it brings me back to the early-stage spirit. It’s an entrepreneurial challenge building up a company in a new market and it’s one I’m well-prepared for thanks to my experience scaling Hive from pre-seed to Series A Stage.

But the great thing this time is that I have major support from the central teams and an awesome product to sell that we have built over the last few years. It makes the whole process faster and more powerful than going from zero.

I really enjoy the strategic challenges of defining the go-to-market and the required localization to have an amazing product-market fit of our offering for the UK. I love finding those answers by going into deep talks with merchants about their current setup and understanding where Hive could fill in the gaps.

‍What have you found differentiates the UK market from the other European markets Hive is already operating in?

It’s interesting to compare the UK with our largest market, Germany. Comparatively, the UK is a smaller country with a slightly lower GDP but there is a higher e-commerce adoption across the population and it’s therefore a more mature market in our commerce segment.

With it being a more mature market there are two things to consider: one is that consumer expectations are also higher, asking for example for weekend delivery which you rarely see in the EU. And secondly, there is higher price sensitivity from brands which can sometimes make it feel like a race to the bottom in terms of pricing.

However, with many brands having been made promises by their previous 3PL partners that were broken, there is certainly an appetite for a higher quality service just like Hive offers. This means that while there’s high price sensitivity, the quality of the offering is still a hugely impactful element.

Speaking of the whole Hive offering, where does Hive stand in comparison to competitors in the UK market?

Something that has been very clear to me is that Hive has by far the best quality offering. We have the highest standards for bespoke processes such as batch management and handling larger orders to retail and other B2B partners. We make these processes very simple for merchants.

I’m happy to say that we also have the highest quality software on the market. This is a huge testament to the work the team has put in over the years based on feedback from other e-commerce merchants.

Local VC-funded competitors in the market are doing an okay-ish job operationally but have comparatively weak software products. This means there’s a quality gap that Hive can fill.

The software provides significant time and cost savings for merchants. For example, being able to book freight and international carrier options, and compare quotes directly in the Hive App means brands can internationalize in the most cost-effective way.

Beyond that, the suite of integrations we have developed means that the Hive App can be used seamlessly alongside other tools in our merchant’s tech stack such as Klaviyo and Gorgias, saving merchants further time and hassle in day-to-day operation – adding up to a real difference both in terms of cost savings and an elevated customer experience.

What has been the most rewarding part of taking on UK expansion?

It has been pretty exciting to be back in customer conversations, close some sales deals, and see merchants happy after their onboarding. It’s a rewarding feeling and makes me feel like I’m getting back to my roots as a founder.

And what has been the biggest challenge?

Just like with every new market expansion, brand awareness is the biggest challenge as people don’t know who you are in the beginning. It means I need to put in a lot of hustle and personal networking to get Hive top of mind within the e-commerce ecosystem here.

However I have certainly earned my stripes as a hustler and networker thanks to my time setting up Hive in Germany, so it’s a challenge I welcome with open arms.

What are you most excited about for the year ahead?

I’m most excited about scaling both our market share and the team in the UK. I’ve been in talks with some high-quality candidates already and I am excited to build up a team of AAA talent here.

Plus, with Hive’s UK market share growing, there is more opportunity to work with further international clients such as US brands. We now are the ideal solution to cover their UK and EU supply chain and be their partner across the pond.

And finally, what’s been your favorite thing about living in London?

I’ve been lucky enough to have been able to regularly walk around the beautiful neighborhoods of Marylebone and Fitzrovia. But to be honest? The highlight has to be the British banter that just makes life a little less serious. Plus, the occasional Guinness in a cozy pub doesn’t hurt either!