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Gopuff

From Wikipedia, the free encyclopedia

GoBrands, Inc.
Company typePrivate
IndustryRetail
Founded2013; 11 years ago (2013)
Founders
  • Yakir Gola
  • Rafael Ilishayev
HeadquartersPhiladelphia, Pennsylvania, U.S.
ServicesOnline platform for convenience delivery
Revenue
  • Increase US$2 billion (2021)
[1]
Number of employees
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, Pennsylvania.[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

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Gopuff is headquartered in Philadelphia, Pennsylvania. Founded in 2013 by 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 multi-year partnership deal with McLaren.[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

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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 percent 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

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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

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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

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  1. ^ "Gopuff". March 23, 2023.
  2. ^ a b Bursztynsky, Jessica (July 12, 2022). "Delivery startup Gopuff cuts 10% of its global workforce and closes 76 U.S. warehouses". CNBC.
  3. ^ "Gobrands, Inc. :: Delaware (US) :: OpenCorporates". OpenCorporates. June 25, 2015. Retrieved April 14, 2024.
  4. ^ "Gopuff Privacy Center". Gopuff. February 8, 2024. Retrieved April 14, 2024. The GoBrands Inc. group of companies (operating as "Gopuff"),
  5. ^ a b 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.
  6. ^ a b Donaldson James, Susan (July 11, 2017). "Late-Night Cravings Inspired goPuff, a Business That's Raised Over $8M". NBC News.
  7. ^ Zapkin, Nina (November 21, 2016). "This Fast-Growing Startup Wants to Make Visiting the Convenience Store Obsolete". Entrepreneur.
  8. ^ Risher, Wayne (June 9, 2020). "Digital retailer Gopuff brings convenience store to doorstep". The Daily Memphian. Retrieved June 16, 2020.
  9. ^ a b c Ha, Anthony (March 23, 2021). "'Instant needs' delivery startup Gopuff raises $1.15B at an $8.9B valuation". TechCrunch. Retrieved April 2, 2021.
  10. ^ a b c 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.
  11. ^ a b Tanenbaum, Michael (May 7, 2021). "Gopuff acquires U.K.-based Fancy to kickstart international expansion". PhillyVoice.
  12. ^ Zakrewski, Cat (June 3, 2016). "GoPuff Raises $5M to Back Delivery of Smokes, Snacks and More". The Wall Street Journal.
  13. ^ a b Ha, Anthony (October 8, 2020). "Delivery startup Gopuff raises $380M at a $3.9B valuation". TechCrunch. Archived from the original on October 10, 2020. Retrieved October 8, 2020.
  14. ^ "Delivery startup Gopuff valued at $15 billion after latest fundraising". Reuters. July 30, 2021. Retrieved August 29, 2021.
  15. ^ Annear, Steve (September 11, 2014). "Hookah Delivery Company 'GoPuff' Changes Up Its Business Model". Boston Magazine. Archived from the original on August 20, 2017. Retrieved January 9, 2022.
  16. ^ DiStefano, Joseph N. (May 8, 2020). "With global cash, GoPuff grows past pot-friendly past; neighbors complain". The Philadelphia Inquirer. Retrieved July 1, 2020.
  17. ^ Barr, Diana (April 4, 2019). "Need snacks, diapers? On-demand retailer expands delivery to St. Louis". St. Louis Business Journal. Retrieved July 1, 2020.
  18. ^ Young, Vicki M. (June 3, 2016). "Delivery Service GoPuff Closes $8.25M Series A Round". WWD. Retrieved July 1, 2020.
  19. ^ Murrell, David (January 21, 2020). "SoftBank Quietly Invested $750 Million in Delivery Startup GoPuff Last Summer". Philadelphia Magazine. Retrieved July 1, 2020.
  20. ^ Rothstein, Matthew (January 21, 2020). "SoftBank Leads $1B Funding Round For Warehouse-To-Consumer Delivery App GoPuff". Bisnow. Retrieved July 1, 2020.
  21. ^ Stangel, Luke (August 5, 2019). "Fast-growing Philadelphia startup inks delivery deal with Graduate Hotels". bizjournals.com. Retrieved May 1, 2020.
  22. ^ Tanenbaum, Michael (November 13, 2018). "Finnigan's Wake building in Northern Liberties will house new goPuff HQ". Philly Voice.
  23. ^ "30 Under 30 2017: Retail & Ecommerce". Forbes. Retrieved March 19, 2018.
  24. ^ Fletcher, Heather. "GoPuff's Brand Magic - Target Marketing". Target Marketing. Retrieved March 19, 2018.
  25. ^ Zighelboim, Selah Maya (March 14, 2018). "Drexel Alumni Commission Torah for Campus Chabad". Jewish Exponent. Retrieved June 16, 2020.
  26. ^ Silver, Matt (March 9, 2020). "GoPuff founders fund Drexel Chabad building". Jewish Exponent. Retrieved June 16, 2020.
  27. ^ Ha, Anthony (November 5, 2020). "Delivery startup goPuff acquires BevMo for $350M". TechCrunch. Archived from the original on December 11, 2020. Retrieved November 6, 2020.
  28. ^ Chang, Andrea (November 5, 2020). "BevMo acquired in $350-million deal as booze deliveries surge". Los Angeles Times. Retrieved November 9, 2020.
  29. ^ Ha, Anthony (October 8, 2020). "Delivery startup goPuff raises $380M at a $3.9B valuation". TechCrunch.
  30. ^ "These are the 2021 CNBC Disruptor 50 companies". CNBC. May 25, 2021. Retrieved July 20, 2021.
  31. ^ "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.
  32. ^ Holland, Frank (May 5, 2021). "Uber partners with Softbank-backed Gopuff to deliver everyday essentials, from snacks to toothpaste". CNBC. Retrieved June 14, 2021.
  33. ^ Chapman, Lizette (May 4, 2021). "Uber Taps SoftBank-Backed GoPuff to Expand Grocery Delivery". Bloomberg.com. Retrieved June 14, 2021.
  34. ^ Baker, Liana (June 17, 2021). "Gopuff to Buy Siemens-Backed RideOS in $100 Million-Plus Deal". Bloomberg. Retrieved July 20, 2021.
  35. ^ Bellan, Rebecca (June 18, 2021). "Delivery service Gopuff acquires rideOS for $115 million". TechCrunch. Retrieved July 20, 2021.
  36. ^ Bosa, Deirdre; Batchelor, Laura (June 21, 2021). "Delivery company Gopuff acquires Liquor Barn, continuing its retail expansion". CNBC. Retrieved June 22, 2021.
  37. ^ "Liquor Barn Sold to National Delivery Service Gopuff". The Lane Report. June 21, 2021.
  38. ^ "McLaren Racing - McLaren Racing announces partnership with instant delivery platform Gopuff". McLaren Racing. February 15, 2022. Retrieved November 18, 2022.
  39. ^ Davalos, Jackie (October 19, 2022). "Rapid-Delivery Startup Gopuff Fires Hundreds in Third Round of Layoffs". Bloomberg. Retrieved October 19, 2022.
  40. ^ Wisenberg Brin, Dinah (September 17, 2016). "Delivery start-up goPuff fills overnight needs — and whims". CNBC.
  41. ^ Japhe, Brad (April 29, 2020). "These Are The Top-Selling Alcoholic Beverages During The Coronavirus Lockdown". Forbes. Retrieved July 1, 2020.
  42. ^ Hilario, Kenneth (December 28, 2015). "Local beer delivery company eyes expansion in 2016". Philadelphia Business Journal.
  43. ^ Dallke, Jim (July 11, 2018). "Alcohol Delivery App goBooze Launches in Chicago". americaninno.com. Retrieved May 1, 2020.
  44. ^ Hilario, Kenneth (May 10, 2016). "On-demand delivery company launches new 'booze' service in D.C." bizjournals.com. Retrieved May 1, 2020.
  45. ^ Shah, Angela (December 13, 2016). "Philadelphia's goBooze Starts Beer, Wine Delivery in Austin". Xconomy. Archived from the original on December 14, 2016.
  46. ^ Erlandson, Henry (February 7, 2020). "Convenience store delivery service Gopuff expands with third Twin Cities warehouse". Star Tribune. Retrieved July 1, 2020.
  47. ^ Lee, Dave (March 27, 2023). "Gopuff turns to rival Uber for rapid delivery help". Financial Times. Retrieved November 14, 2023.
  48. ^ a b c Hill, Kashmir (July 3, 2017). "No, Your Phone Isn't Secretly Recording You". Gizmodo. Retrieved July 5, 2018.
  49. ^ Katie Johnston (March 30, 2023). "AG fines Gopuff delivery company $6.2 million for misclassifying drivers, other violations". The Boston Globe.
  50. ^ Wiessner, Daniel (March 30, 2023). "Massachusetts fines delivery startup Gopuff $6.2 mln in worker pay dispute". Reuters.
  51. ^ 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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