GoBrands, Inc.
TypePrivate
IndustryRetail
Founded2013 (2013)
Founders
  • Yakir Gola
  • Rafael Ilishayev
HeadquartersPhiladelphia, Pennsylvania, U.S.
ServicesOnline platform for convenience delivery
Number of employees
c.15,000[1]
Websitegopuff.com

Gopuff, legally GoBrands, Inc., is an American consumer goods and food delivery company headquartered in Philadelphia.[2][3][4] The company operates in more than 650 US cities through approximately 500 microfulfillment centers as of October 2021.[5][2][6][7] It also operates in the United Kingdom, following a takeover of Newcastle upon Tyne-based Fancy.[8][9] As of July 2021, the company was valued at $15 billion.[6][7][10][11]

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.[12] The company began offering delivery services in Philadelphia before moving into other cities, including Seattle, Boston, Phoenix, and Atlanta.[13][14]

In 2016, Gopuff raised $8.25 million in A round funding.[15] In 2019, the company reportedly raised $750 million in funding from SoftBank, with a commitment for up to $250 million more.[16][17] Also in 2019, Gopuff opened a new headquarters in the Finnigan's Wake building in Northern Liberties.[18][19]

Gola and Ilishayev were included in a 2017 Forbes 30 Under 30 list for retail and ecommerce[20] and later in the year, were together named Target Magazine's target marketer of the year.[21] While founding Gopuff, Gola and Ilishayev bonded over their similar ancestries and family backgrounds,[3] and later became supporters of Drexel's Jewish community, providing funding for Drexel Chabad to purchase a new building in 2020.[22][23]

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.[10] In November, Gopuff agreed to purchase BevMo! for $350 million.[24] The alcoholic beverage chain has 161 stores in California, Washington and Arizona.[25][26]

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.[6][7] That month, it was listed on CNBC's Disruptor 50 list.[27]

In April 2021, Gopuff added the first independent board member, Betsy Atkins, to its board.[28]

In May 2021, Gopuff acquired Fancy, a UK-based food delivery service.[8] Also in May, Gopuff and Uber Eats announced a partnership to sell products from Gopuff through the Uber Eats app.[29][30]

In June 2021, Gopuff acquired Liquor Barn, an alcoholic beverage chain, and announced the acquisition of RideOS for $115 million.[31][32][33][34]

In February 2022, Gopuff signed a partnership deal with McLaren for the 2022 Formula One season.[35]

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.[1] In October 2022, the company conducted more layoffs, firing some 250 employees.[36]

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.[37] Beer, wine, and spirits are available for delivery in some markets.[38]

In December 2015, Gopuff launched a beer delivery service called goBeer.[39] In May 2016, they launched an alcohol delivery service called goBooze.[40][41][42] 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.[43]

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.[44]

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.[45] Appsee criticized Gopuff for violating its terms of service.[45] 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.[45]

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.[46][47]

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.[48]

References

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

Bibliography

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.