Gopuff

HeadquartersPhiladelphia, Pennsylvania, U.S.ServicesOnline platform for convenience deliveryRevenue^[1]c. 15,000^[2]SubsidiariesBevMo!Websitegopuff.com

GoBrands, Inc.,^[3][4] doing business as Gopuff, is an American consumer goods and food delivery company headquartered in Philadelphia.^[5][6][7] The company operates in more than 650 US cities through approximately 500 microfulfillment centers as of October 2021.^{[8][5][9][10]} It also operates in the United Kingdom, following a takeover of Newcastle upon Tyne-based Fancy.^[11][12] As of July 2021, the company was valued at $15 billion.^{[9][10][13][14]}

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.^[15] The company began offering delivery services in Philadelphia before moving into other cities, including Seattle, Boston, Phoenix, and Atlanta.^[16][17]

In 2016, Gopuff raised $8.25 million in A round funding.^[18] In 2019, the company reportedly raised $750 million in funding from SoftBank, with a commitment for up to $250 million more.^[19][20] Also in 2019, Gopuff opened a new headquarters in the Finnigan's Wake building in Northern Liberties.^[21][22]

Gola and Ilishayev were included in a 2017 Forbes 30 Under 30 list for retail and ecommerce^[23] and later in the year, were together named Target Magazine's target marketer of the year.^[24] While founding Gopuff, Gola and Ilishayev bonded over their similar ancestries and family backgrounds,^[6] and later became supporters of Drexel's Jewish community, providing funding for Drexel Chabad to purchase a new building in 2020.^[25][26]

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.^[13] In November, Gopuff agreed to purchase BevMo! for $350 million.^[27] The alcoholic beverage chain has 161 stores in California, Washington and Arizona.^[28][29]

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.^[9][10] That month, it was listed on CNBC's Disruptor 50 list.^[30]

In April 2021, Gopuff added the first independent board member, Betsy Atkins, to its board.^[31]

In May 2021, Gopuff acquired Fancy, a UK-based food delivery service.^[11] Also in May, Gopuff and Uber Eats announced a partnership to sell products from Gopuff through the Uber Eats app.^[32][33]

In June 2021, Gopuff acquired Liquor Barn, an alcoholic beverage chain, and announced the acquisition of RideOS for $115 million.^{[34][35][36][37]}

In February 2022, Gopuff signed a partnership deal with McLaren for the 2022 Formula One season.^[38]

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.^[39]

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.^[40] Beer, wine, and spirits are available for delivery in some markets.^[41]

In December 2015, Gopuff launched a beer delivery service called goBeer.^[42] In May 2016, they launched an alcohol delivery service called goBooze.^[43][44][45] 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.^[46]

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.^[47]

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.^[48] Appsee criticized Gopuff for violating its terms of service.^[48] 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.^[48]

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.^[49][50]

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.^[51]

References

Bibliography

External links

• Official website