San Francisco and Newark only just rolled it out in September, and NYC and Minneapolis in October, so I’m not sure how they’re seeing a six-figure savings as yet; see their blog for press releases about these and other municipalities. I would also be a little concerned about a company whose CEO is a member of the board of the Direct Marketing Association. Would they want to sign people up for the Zumbox service so that they could then sell that list to various mail marketing people? (See the comment to this post for some thoughts on that.)
It’s unclear from their website whether municipalities will always be able to use this service for free. This blog post says that it’s free for municipal organizations, and that for others, it will cost 5 cents. When their investor funding runs low, will they begin to charge cities a fee?
Pitney Bowes is suing them for copyright infringement. Beyond articles about the lawsuit, every article I find about this company is akin to a press release (like interviews with the director of marketing). Part of that is, I’m sure, that it’s a new system and that their client list is limited and new. But I for one would be concerned about using a new company that seems to have a heavy marketing ethos (I know, startups need to, but I think it’s relevant when you’re talking about a mail-delivery system) and who has just recently started expanding its client base to some decent-sized cities.
This would be a great topic for someone to research further…