Gopuff

Last updated

GoBrands, Inc.
Company type Private
Industry Retail
Founded2013;11 years ago (2013)
Founders
  • Yakir Gola
  • Rafael Ilishayev
Headquarters Philadelphia, Pennsylvania, U.S.
Services Online platform for convenience delivery
Revenue
  • Increase2.svgUS$2 billion (2021)
[1]
Number of employees
c. 15,000 [2]
Website gopuff.com

Gopuff, legally GoBrands, Inc., is an American consumer goods and food delivery company headquartered in Philadelphia. [3] [4] [5] The company operates in more than 650 US cities through approximately 500 microfulfillment centers as of October 2021. [6] [3] [7] [8] It also operates in the United Kingdom, following a takeover of Newcastle upon Tyne-based Fancy. [9] [10] As of July 2021, the company was valued at $15 billion. [7] [8] [11] [12]

Contents

History

Gopuff is headquartered in Philadelphia, Pennsylvania, and was founded in 2013 by two Drexel University students: Yakir Gola and Rafael Ilishayev. Gopuff was originally an on-demand hookah delivery service but expanded to delivering food and goods typically sold in convenience stores. [13] The company began offering delivery services in Philadelphia before moving into other cities, including Seattle, Boston, Phoenix, and Atlanta. [14] [15]

In 2016, Gopuff raised $8.25 million in A round funding. [16] In 2019, the company reportedly raised $750 million in funding from SoftBank, with a commitment for up to $250 million more. [17] [18] Also in 2019, Gopuff opened a new headquarters in the Finnigan's Wake building in Northern Liberties. [19] [20]

Gola and Ilishayev were included in a 2017 Forbes 30 Under 30 list for retail and ecommerce [21] and later in the year, were together named Target Magazine's target marketer of the year. [22] While founding Gopuff, Gola and Ilishayev bonded over their similar ancestries and family backgrounds, [4] and later became supporters of Drexel's Jewish community, providing funding for Drexel Chabad to purchase a new building in 2020. [23] [24]

In October 2020, the company announced that it had raised $380 million in a funding round led by Accel and D1 Capital Partners, bringing the company's total value to $3.9 billion. [11] In November, Gopuff agreed to purchase BevMo! for $350 million. [25] The alcoholic beverage chain has 161 stores in California, Washington and Arizona. [26] [27]

In March 2021, Gopuff announced that it had raised $1.15 billion in funding from investors including D1 Capital Partners, Fidelity Management and Research Company , and Luxor Capital. [7] [8] That month, it was listed on CNBC's Disruptor 50 list. [28]

In April 2021, Gopuff added the first independent board member, Betsy Atkins, to its board. [29]

In May 2021, Gopuff acquired Fancy, a UK-based food delivery service. [9] Also in May, Gopuff and Uber Eats announced a partnership to sell products from Gopuff through the Uber Eats app. [30] [31]

In June 2021, Gopuff acquired Liquor Barn, an alcoholic beverage chain, and announced the acquisition of RideOS for $115 million. [32] [33] [34] [35]

In February 2022, Gopuff signed a partnership deal with McLaren for the 2022 Formula One season. [36]

In July 2022, Gopuff announced closure of 76 of its U.S. warehouses and layoffs impacting about 1,500 employees. The company still intends to expand services at other high-performing locations. [2] In October 2022, the company conducted more layoffs, firing some 250 employees. [37]

Services and operation

Gopuff primarily delivers goods typically found in convenience stores such as snacks, drinks, household items, toiletries as well as pet and baby products like diapers. [38] Beer, wine, and spirits are available for delivery in some markets. [39]

In December 2015, Gopuff launched a beer delivery service called goBeer. [40] In May 2016, they launched an alcohol delivery service called goBooze. [41] [42] [43] These services are organized under the umbrella of goBrands Inc.

The company owns warehouses that stock many of the products it delivers, including electronics, food, medications, and pet supplies. [44]

A fall in demand following the sector’s boom during the Covid-19 lockdowns affected Gopuff as well. In March 2023, Uber couriers were handling at least 4 per cent of all Gopuff orders in the US, to deal with a gap in the latter's own driver workforce. The two companies were also reported to be in talks for Gopuff orders to be placed through the Uber Eats app. [45]

Privacy issues

In 2018, researchers from Northeastern University found that the Gopuff mobile app recorded user interactions that involved personal information, and transmitted the resulting video to a website affiliated with analytics company Appsee. [46] Appsee criticized Gopuff for violating its terms of service. [46] Gopuff stated that it would remove Appsee code from future versions of its iOS and Android apps, and amend its privacy policy to disclose possible data transfer to the app. [46]

Controversies

In March 2023, Gopuff was fined $6.2 million by Massachusetts Attorney General Andrea Campbell for misclassification of employees as independent contractors and other state labor law violations. [47] [48]

In May 2023, Gopuff lost its license to deliver alcohol in Massachusetts after it delivered alcohol to 19 underage people near Boston College in 2021. [49]

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References

  1. ↑ "Gopuff". March 23, 2023.
  2. 1 2 Bursztynsky, Jessica (July 12, 2022). "Delivery startup Gopuff cuts 10% of its global workforce and closes 76 U.S. warehouses". CNBC .
  3. 1 2 Debter, Lauren (August 31, 2020). "Beer, Band-Aids And Ben & Jerry's: Why Venture Capitalists Gave Two 27-Year-Olds $1 Billion To Build The Ultimate Online Convenience Store". Forbes.
  4. 1 2 Donaldson James, Susan (July 11, 2017). "Late-Night Cravings Inspired goPuff, a Business That's Raised Over $8M". NBC News.
  5. ↑ Zapkin, Nina (November 21, 2016). "This Fast-Growing Startup Wants to Make Visiting the Convenience Store Obsolete". Entrepreneur.
  6. ↑ Risher, Wayne (June 9, 2020). "Digital retailer Gopuff brings convenience store to doorstep". The Daily Memphian. Retrieved June 16, 2020.
  7. 1 2 3 Ha, Anthony (March 23, 2021). "'Instant needs' delivery startup Gopuff raises $1.15B at an $8.9B valuation". TechCrunch. Retrieved April 2, 2021.
  8. 1 2 3 Palmer, Annie (March 23, 2021). "SoftBank-backed delivery start-up Gopuff valued at $8.9 billion in new funding round, more than double from five months ago". CNBC. Retrieved April 2, 2021.
  9. 1 2 Tanenbaum, Michael (May 7, 2021). "Gopuff acquires U.K.-based Fancy to kickstart international expansion". PhillyVoice.
  10. ↑ Zakrewski, Cat (June 3, 2016). "GoPuff Raises $5M to Back Delivery of Smokes, Snacks and More". The Wall Street Journal.
  11. 1 2 Ha, Anthony (October 8, 2020). "Delivery startup Gopuff raises $380M at a $3.9B valuation". TechCrunch. Retrieved October 8, 2020.
  12. ↑ "Delivery startup Gopuff valued at $15 billion after latest fundraising". Reuters. July 30, 2021. Retrieved August 29, 2021.
  13. ↑ Annear, Steve (September 11, 2014). "Hookah Delivery Company 'GoPuff' Changes Up Its Business Model". Boston Magazine.
  14. ↑ DiStefano, Joseph N. (May 8, 2020). "With global cash, GoPuff grows past pot-friendly past; neighbors complain". The Philadelphia Inquirer. Retrieved July 1, 2020.
  15. ↑ Barr, Diana (April 4, 2019). "Need snacks, diapers? On-demand retailer expands delivery to St. Louis". St. Louis Business Journal. Retrieved July 1, 2020.
  16. ↑ Young, Vicki M. (June 3, 2016). "Delivery Service GoPuff Closes $8.25M Series A Round". WWD. Retrieved July 1, 2020.
  17. ↑ Murrell, David (January 21, 2020). "SoftBank Quietly Invested $750 Million in Delivery Startup GoPuff Last Summer". Philadelphia Magazine. Retrieved July 1, 2020.
  18. ↑ Rothstein, Matthew (January 21, 2020). "SoftBank Leads $1B Funding Round For Warehouse-To-Consumer Delivery App GoPuff". Bisnow. Retrieved July 1, 2020.
  19. ↑ Stangel, Luke (August 5, 2019). "Fast-growing Philadelphia startup inks delivery deal with Graduate Hotels". bizjournals.com. Retrieved May 1, 2020.
  20. ↑ Tanenbaum, Michael (November 13, 2018). "Finnigan's Wake building in Northern Liberties will house new goPuff HQ". Philly Voice.
  21. ↑ "30 Under 30 2017: Retail & Ecommerce". Forbes. Retrieved March 19, 2018.
  22. ↑ Fletcher, Heather. "GoPuff's Brand Magic - Target Marketing". Target Marketing. Retrieved March 19, 2018.
  23. ↑ Zighelboim, Selah Maya (March 14, 2018). "Drexel Alumni Commission Torah for Campus Chabad". Jewish Exponent. Retrieved June 16, 2020.
  24. ↑ Silver, Matt (March 9, 2020). "GoPuff founders fund Drexel Chabad building". Jewish Exponent. Retrieved June 16, 2020.
  25. ↑ Ha, Anthony (November 5, 2020). "Delivery startup goPuff acquires BevMo for $350M". TechCrunch. Retrieved November 6, 2020.
  26. ↑ Chang, Andrea (November 5, 2020). "BevMo acquired in $350-million deal as booze deliveries surge". Los Angeles Times. Retrieved November 9, 2020.
  27. ↑ Ha, Anthony (October 8, 2020). "Delivery startup goPuff raises $380M at a $3.9B valuation". TechCrunch.
  28. ↑ "These are the 2021 CNBC Disruptor 50 companies". CNBC. May 25, 2021. Retrieved July 20, 2021.
  29. ↑ "Gopuff Appoints Betsy Atkins as First Independent Board Member". finance.yahoo.com. April 12, 2021. Archived from the original on May 5, 2021. Retrieved May 5, 2021.
  30. ↑ Holland, Frank (May 5, 2021). "Uber partners with Softbank-backed Gopuff to deliver everyday essentials, from snacks to toothpaste". CNBC. Retrieved June 14, 2021.
  31. ↑ Chapman, Lizette (May 4, 2021). "Uber Taps SoftBank-Backed GoPuff to Expand Grocery Delivery". Bloomberg.com. Retrieved June 14, 2021.
  32. ↑ Baker, Liana (June 17, 2021). "Gopuff to Buy Siemens-Backed RideOS in $100 Million-Plus Deal". Bloomberg. Retrieved July 20, 2021.
  33. ↑ Bellan, Rebecca (June 18, 2021). "Delivery service Gopuff acquires rideOS for $115 million". TechCrunch. Retrieved July 20, 2021.
  34. ↑ Bosa, Deirdre; Batchelor, Laura (June 21, 2021). "Delivery company Gopuff acquires Liquor Barn, continuing its retail expansion". CNBC. Retrieved June 22, 2021.
  35. ↑ "Liquor Barn Sold to National Delivery Service Gopuff". The Lane Report. June 21, 2021.
  36. ↑ "McLaren Racing - McLaren Racing announces partnership with instant delivery platform Gopuff". www.mclaren.com. February 15, 2022. Retrieved November 18, 2022.
  37. ↑ Davalos, Jackie (October 19, 2022). "Rapid-Delivery Startup Gopuff Fires Hundreds in Third Round of Layoffs". Bloomberg. Retrieved October 19, 2022.
  38. ↑ Wisenberg Brin, Dinah (September 17, 2016). "Delivery start-up goPuff fills overnight needs — and whims". CNBC.
  39. ↑ Japhe, Brad (April 29, 2020). "These Are The Top-Selling Alcoholic Beverages During The Coronavirus Lockdown". Forbes. Retrieved July 1, 2020.
  40. ↑ Hilario, Kenneth (December 28, 2015). "Local beer delivery company eyes expansion in 2016". Philadelphia Business Journal.
  41. ↑ Dallke, Jim (July 11, 2018). "Alcohol Delivery App goBooze Launches in Chicago". americaninno.com. Retrieved May 1, 2020.
  42. ↑ Hilario, Kenneth (May 10, 2016). "On-demand delivery company launches new 'booze' service in D.C." bizjournals.com. Retrieved May 1, 2020.
  43. ↑ Shah, Angela (December 13, 2016). "Philadelphia's goBooze Starts Beer, Wine Delivery in Austin". Xconomy. Archived from the original on December 14, 2016.
  44. ↑ Erlandson, Henry (February 7, 2020). "Convenience store delivery service Gopuff expands with third Twin Cities warehouse". Star Tribune. Retrieved July 1, 2020.
  45. ↑ Lee, Dave (March 27, 2023). "Gopuff turns to rival Uber for rapid delivery help". Financial Times. Retrieved November 14, 2023.
  46. 1 2 3 Hill, Kashmir (July 3, 2017). "No, Your Phone Isn't Secretly Recording You". Gizmodo. Retrieved July 5, 2018.
  47. ↑ Katie Johnston (March 30, 2023). "AG fines Gopuff delivery company $6.2 million for misclassifying drivers, other violations". The Boston Globe .
  48. ↑ Wiessner, Daniel (March 30, 2023). "Massachusetts fines delivery startup Gopuff $6.2 mln in worker pay dispute". Reuters.
  49. ↑ Diti Kohli (May 19, 2023). "GoPuff loses Mass. alcohol license for repeatedly delivering to underage buyers at BC". The Boston Globe .

Bibliography

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