Table of Contents
Introduction:
Digital delivery company GoPuff has its main office in Philadelphia, Pennsylvania. Compared to other delivery services, GoPuff is unique. The company buys, stores, and sells its own inventory; profits are made when an item can be sold for more than it costs to buy and store it. In addition, GoPuff charges a flat delivery cost of $1.95 while adamantly declaring that it does not increase pricing.
Additionally, GoPuff Fam is a monthly membership club that provides a number of cost-free benefits. Additionally, the business offers to advertise to brands in the form of prominent product placements.
About GoPuff:
GoPuff is a Philadelphia-based American firm that delivers food and consumer products. By the end of October 2021, the company will have micro-fulfillment sites in over 650 US locales. Following the acquisition of Fancy, a company established in Newcastle upon Tyne, it also operates in the UK. The corporation had a $15 billion market value as of July 2021.
GoPuff Founder & Team:
Yakir Gola and Rafael Ilishayev, the company’s co-founders, were sophomores at Philadelphia’s Drexel University in 2013 when they became aware that Yakir was doing far too many errands for their pals because he was the only one of them with a car. So they wrote mockups of the app all night long on the back of their class notes.
They resumed distributing those same conveniences across campus three months later out of the back of their Plymouth Voyager. Today, GoPuff has hundreds of locations and serves clients in the United States and Europe.
GoPuff History:
Yakir Gola and Rafael Ilishayev, two Drexel University students, launched GoPuff in 2013, which has its headquarters in Philadelphia, Pennsylvania. GoPuff began as an on-demand delivery service for hookahs but has since grown to provide food and products commonly found at convenience stores. Prior to expanding to other locations, including Seattle, Boston, Phoenix, and Atlanta, the company started off by providing delivery services in Philadelphia.
GoPuff received $8.25 million in A round of fundraising in 2016. The company reportedly received $750 million in capital from SoftBank in 2019, with an additional $250 million in funding commitments. GoPuff inaugurated a new headquarters in the Northern Liberties Finnigan’s Wake building in 2019.
In addition to being selected 2017’s Target Magazine’s target marketer of the year, Gola and Ilishayev were also named on 2017’s Forbes 30 Under 30 list for retail and e-commerce. Gola and Ilishayev met while creating GoPuff and grew close because of their shared ancestry and family history. After that, they supported the Drexel Jewish community by giving money to Drexel Chabad to buy a new building in 2020.
The company’s overall value increased to $3.9 billion in October 2020 after it revealed that it had raised $380 million in a fundraising round headed by Accel and D1 Capital Partners. GoPuff and BevMo! agreed to buy one other in November for $350 million. The chain of alcoholic beverage retailers has 161 locations in Arizona, California, and Washington.
GoPuff revealed that it had secured $1.15 billion in capital from backers, including D1 Capital Partners, Fidelity Management and Research Company, and Luxor Capital in March 2021. It was included in the CNBC Disruptor 50 list for that month. GoPuff appointed Betsy Atkins as the first independent board member in April 2021.
GoPuff purchased the UK-based food delivery startup Fancy in May 2021. Additionally, in May, GoPuff and Uber Eat announced a collaboration to sell GoPuff goods via the Uber Eats app. GoPuff purchased the liquor store chain Liquor Barn in June 2021 and revealed plans to purchase RideOS for $115 million. GoPuff and McLaren agreed on cooperation in February 2022 for the 2022 Formula One season.
GoPuff announced the closing of 76 of its U.S. warehouses in July 2022, along with the layoffs of about 1,500 workers. The business still has plans to increase its offerings at additional productive sites. The company fired 250 workers in more layoffs in October 2022.
GoPuff Name & Logo:
GoPuff Highlight:
| Company Name | GoPuff |
| Founders | Rafael Ilishayev and Yakir Gola |
| Started at | 2013 |
| Competitors | Instacart.Shipt.Rappi.Burpy.FreshDirect.OurHarvest.Onfleet.Grower. |
| Website | https://www.GoPuff.com/ |
| Revenue | $180 M |
| Country | USA |
| Customer care Email | Not Known |
| Customer care Contact details | Not Known |
| Company Valuation | Not Known |
| Industry | Food Delivery |
| Headquarters | Philadelphia, Pennsylvania, United States |
GoPuff Revenue:
The annual revenue for GoPuff is $180.0M. The data science team at Zippia discovered the following important financial KPIs after doing considerable investigation and analysis. GoPuff employs 10,000 people, with an $18,000 revenue per employee ratio. In 2021, GoPuff’s top revenue was $180.0M.
GoPuff Funding & Investors:
It has financial support from companies including Accel, Blackstone Inc., Baillie Gifford, D1 Capital Partners, and the Vision Fund of SoftBank Group Corp. Over the course of 11 rounds, GoPuff has raised a total of $3.4B in investment. Their most recent fundraising came from an Undisclosed round that was raised on May 18, 2022. 23 investors are funding GoPuff.
GoPuff Business Model:
GoPuff has several revenue generation streams. Following is a look at each.
Item markup:
GoPuff, as previously mentioned, is unique from other delivery services in that it buys, stores, and sells all of its own goods. When a business can sell a product for more than it costs to buy and store it, it generates revenue and, more crucially, profit.
With the use of this business strategy, GoPuff can control its inventory levels, lowering the possibility that a product will go out of stock. Order pickers have the delivery prepared before the courier comes, which speeds up order fulfillment. However, GoPuff, a direct seller, is required to make warehouse space investments anytime it grows. The eligible jurisdictions also require payment for pricey liquor licenses.
Delivery fee:
GoPuff openly acknowledges that it does not surge or raise rates and charges a fixed $1.95 delivery fee. Any delivery that includes alcohol will be charged an extra $2. This price guarantees the legal delivery of alcoholic beverages and related ID confirmation. Each order’s total must be at least $10.95 to maintain a flat shipping price.
GoPuff Fam:
A monthly membership program called GoPuff Fam offers a number of free benefits. The most important advantage among these is the $5.95/month option for free delivery on all orders.
Advertising and consumer data:
Additionally, the business offers to advertise to brands in the form of prominent product placements. One such instance is Nightfood, a new ice cream company that paid GoPuff over $600,000 for first-place app placement. GoPuff agreed to provide the startup with information about who and when it was purchasing its ice cream as part of the agreement.
Services Offered thru GoPuff:
All of your daily necessities are delivered by GoPuff at your door or wherever you are! Each GoPuff location houses over 4,000 things, so when you order, your items are shipped directly from us to you. Since we are not a courier service and deliver items directly to customers rather than having them pick them up from a shop, we do not impose surge pricing.
GoPuff mostly sends out items that are commonly found in convenience stores, including snacks, drinks, home goods, hygiene, as well as pet and kid supplies like diapers. In some markets, beer, wine, and spirits can be delivered.
GoPuff introduced its goBeer beer delivery service in December 2015. They introduced the goBooze alcohol delivery service in May 2016. GoBrands Inc. is the organization that oversees these services. Electronics, food, pharmaceuticals, and pet supplies are just a few of the things the business distributes that are kept in stock in its own warehouses.
GoPuff Controversy:
Northeastern University researchers discovered in 2018 that the GoPuff mobile app filmed user interactions involving personal data and sent the resulting video to a website connected to analytics firm Appsee.
GoPuff was called out by Appsee for breaking its terms of service. Going forward, GoPuff said it would remove the Appsee code from its iOS and Android apps and update its privacy statement to include information about potential data transfers to the app.
GoPuff Awards & Recognition:
There is no data on it.
GoPuff Competitors:
Top 10 Alternatives to GoPuff:
- Instacart.
- Shipt.
- Rappi.
- Burpy.
- FreshDirect.
- OurHarvest.
- Onfleet.
- Growcer.
GoPuff Latest News:
There is no data on it.
GoPuff Future Plans:
GoPuff costs $5.95 a month for a membership program that includes free shipping and discounts. Additionally, it offers brands advertising spaces and compiled consumer data. The company stores GoPuff products before selling them, so the co-founders also had to persuade regional distributors to work with them.
As they pursued their degrees, Gola and Ilishayev continued to make deliveries and used the money generated to expand into Chicago and Washington, D.C.
FAQs about GoPuff:
What is GoPuff?
Groceries, Alcohol, Home Essentials & more. Order in seconds, delivered in minutes.
How much is GoPuff?
Depending on your location, delivery fees start as low as £2.49. To determine the delivery cost of your local retailer, download the app and enter your address.
How late does GoPuff deliver?
Enter your address at www.GoPuff.com or in the app to see your local hours.
Does GoPuff deliver to me?
Open the GoPuff app or visit www.GoPuff.com and enter your address to see if we deliver to you.
What is the GoPuff order minimum?
Just add whatever you need to your bag. Our order minimum is as low as $12.95. Once you hit the order minimum, we’ll take care of the rest.
What do you know about GoPuff?
As a consumer tech platform, GoPuff leverages hyperlocal technology to deliver everyday essentials to customers in more than 1,000 cities. We offer thousands of products ranging from quick meals and snacks to cleaning supplies, baby and pet products, and, in select markets, alcohol, available to individuals aged 21+.
Does Gopuff go all night?
Yes, goPuff delivers Day to Night if it’s available in your area, as well as thousands of snacks, drinks and home goods.
Do you tip Gopuff drivers?
While you are not required to tip, your delivery partner would most certainly appreciate it if you did! You may leave your driver a tip on your credit card or debit card at checkout in the app. Your delivery partner gets 100% of your tip!
Does Gopuff pay mileage?
No, all drivers are independent not employees so goPuff does not reimburse for mileage.
What type of service is GoPuff?
GoPuff was originally an on-demand hookah delivery service but expanded to delivering food and goods typically sold in convenience stores. The company began offering delivery services in Philadelphia before moving into other cities, including Seattle, Boston, Phoenix, and Atlanta.
Conclusion:
GoPuff is an American company that offers online delivery of booze and everyday household items. University students who noticed that maintaining their college home required a lot of work and inconvenience started it. GoPuff earns money by selling goods at a profit as a direct buyer and a keeper of inventory. For orders over a specific value, a flat delivery cost is further charged.
