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AI-backed retail energy startup based in Houston prepares to grow its technology

Houston-based Evolve Energy uses a subscription-based wholesale energy plan to help its customers find better prices for more sustainable resources. Photo via evolvemyenergy.com

A wholesale retail energy startup based in Houston is preparing to scale its artificial intelligence-backed business based on its positive customer feedback

Evolve Energy uses AI and machine learning to optimize energy usage, providing customers with the best wholesale energy prices on fluctuating renewable resources.

"We want to help our customers save a significant amount of money on electricity costs and help them decarbonize the grid," CEO Michael Lee tells InnovationMap."There's been a serious of emerging events that enable us to do both at the same time, it's no longer a choice."

Evolve Energy, founded in 2018, sells wholesale electricity at cost to residential customers in Texas, charging a $10 monthly subscription fee plus the cost of wholesale electricity. Using their AI technology, they predict when price surges are likely and determine how much energy the customer needs to hit the parameters set on the app by the customer and usage history. The customer does not need to do anything but pair Evolve with their smart thermostat.

According to Lee, this enables customers to continue to use the same volume of electricity but cut their bill by 40 percent over the course of a year. Evolve uses a different business model, positioning itself not as energy providers but as efficient energy managers, passing their wholesale rate with no markup for even more savings to the customer.

"It builds a lot of trust between the customer and the supplier, they truly see that our incentive is to save them money and not to sell them any more power," Lee says.

With the increasing trend of electrification, Lee sees the role of energy companies grow in importance. This gives energy managers like Evolve a magnified role as machine learning and AI becomes imperative to shift consumption when renewables are cheaper on the grid.

Evolve is backed by several investors including Matt Rogers, the original co-founder of Nest thermostats through his investment platform, Incite; Urban-X funded by BMW MINI which focuses on smart applications; and the Austin-based startup accelerator and investor, Capital Factory.

The company has been officially on the market for the past two months, but it's already working on deploying capital to build in features requested by customers. Evolve expects significant growth in the next few years due to its highly scalable model.

"I'm just glad we could create a product that no longer makes it a choice between reducing emissions and saving money," Lee says.

Florida startup Fit:Match chose Houston for its first location of its AI-enabled retail store. Photo via shopfitmatch.com

In November, on the first floor of Friendswood's Baybrook Mall, wedged between the Abercrombie & Fitch and the Apple Store, a small studio popped up. At the window, a bubblegum assortment of balloons replaced the usual spruced-up manakin, and the shop is sparse for racks of clothing.

That's because the Fit:Match studio isn't really trying to sell clothes — it's trying to help you buy them online. By fusing artificial intelligence with retail shopping, Fit:Match makes ordering clothes online more trustworthy. The writing on the walls promised to revolutionize the way that people could: "Shop what fits. Not what doesn't," reads a neon sign. The tech might not only reduce long waits for the dressing room — it could abolish it altogether.

"You never have to try on clothes again," says Haniff Brown, founder of the Florida-native startup.

The store does have a fitting room, but Brown says it's not really for trying on clothes — it's for preparing to "get fitched," the process through which the imaging tech measures a customer's body.

It's fitting that the pop-up sits next to the iPhone giant. Fit:Match uses the same 3D imaging tech as Apple's FaceID, Brown says, which blasts infrared light at thousands of dots at a user's face. Where the light bounces off, the AI technology images the person's face. The sensors at the Fit:Match studio in Baybrook Mall expand this to the rest of the body. In 10 seconds, the AI sensor lets people sketches a customer's shape through 150 measurements.

Those measurements become indicators of how well a piece of clothing will fit the wearer. In the initial phase of the project, Brown's team fitched thousands of women — wanting to keep things neat, the company hasn't ventured into men's fashion yet — and compared the scores of the AI's algorithm with how the women scored their own clothes.

Now, once a customer has been fitched at the Baybrook studio, she can log online through an app or the company site and sift through thousands of clothes that will likely fit her. Each clothing item — mostly smaller brands that range from eclectic pieces and dresses to athleisure right now, Brown says, although he's already working to partner with better-known labels — is rated with a percentage of how well it's likely to fit the individual customer, based on her measurements and on how snug or loose she likes her wear. From the array of brands, she'll get specific matches — clothes that have a 90 percent chance or higher of fitting — that might look completely different from a friend's. Over time, the app will also update her on the latest matches.

"You're going to have this personalized wallet," Brown says, adding that this will also decrease a store's rate of return. "You will see a completely truncated assortment of clothes that are meant to fit you."

The Baybrook Mall hosts Fit:Match's first location. Brown says he chose the Houston area for its size and demographics, calling it a "hotbed to test new ideas, to get traction, to get customer feedback," and is even considering expanding to the Woodlands Mall and other places around Texas, too. It's also not far from the Austin-based Capital Factory, which brought Fit:Match under its wing late last year to help the startup raise $5 million.

In the meantime, the five-member management team at Fit:Match is focused on getting more Houstonians fitched. In the first month of operations, the studio measured more than 1,200 mallgoers, and Brown says the company could fitch a quarter million in the next two or three years.

"We think that the opportunity here is immense," Brown says.