Consumer Need Fulfillment Co goPuff Nets $380M On A $3.9B Valuation
The company was founded in 2013 and offers customers the ability to order cleaning and home products, over-the-counter medications, and food and drinks. In some markets, alcohol can be ordered via the service.
goPuff’s innovation comes from bringing the convenience store to the customer rather than the other way around. PYMNTS reported that its use likely comes when one is up late and is badly in need of everyday snacks and drinks. goPuff works to remove the manual steps of traveling to buy those things.
But despite chips and candy doing fairly well for the company, healthy snacks are actually the fastest-growing category of sales. There are also other, more abnormal offerings, like cutlery sets, hookahs and butane torches for those in need, PYMNTS reported.
Co-Founder Yakir Gola said the impetus for the idea came from the perceived weakness of a convenience store. When one has to go back out again, it becomes less than convenient.
Customers can order from the company’s website.
The company has 200 micro-fulfillment centers to service the markets in every one of the 500 cities it serves, which FinSMEs reported allows it to deliver thousands of products quickly for a $1.95 delivery charge.
The company bills its delivery time as “less time than it takes to finish the next episode of whichever show you’re binging,” PYMNTS reported.
The funding round valued goPuff at $3.9 billion, and the leading investors were Accel and D1 Capital Partners. Luxor Capital and SoftBank Vision Fund also participated. With the new funding, the company intends to keep working on expansion, new product offerings and hiring new employees, FinSMEs reported.