Delivery Service goPuff Buys West Coast-Based BevMo For $350M
The $350 million deal is expected to close within 30 days, the Los Angeles Times reported.
Philadelphia-based goPuff, which bills itself as a kind of catch-all service for helping customers with various everyday shopping needs, is hoping to use the announcement to enter into the California market, the blog post stated. BevMo will get new customers from the deal, along with access to immediate delivery of everyday items like baby and pet products, cleaning supplies, food, alcohol and local favorites.
The blog post touted BevMo’s loyal customer base and said the company has a “deep infrastructure” and “iconic brand” to match goPuff’s tech-driven system. BevMo boasts an operation in 161 neighborhood stores in California, Arizona and Washington, which goPuff plans to use to integrate its micro-fulfillment centers.
The centers will allow goPuff to reach customers around the West Coast in 30 minutes or less to purchase items in what the blog post called a “rapidly expanding” inventory.
BevMo’s Josiah Knutsen said in the post that goPuff “has created a truly differentiated approach and defined the instant needs category, [which] will allow us to better meet our consumers’ evolving needs, including delivering everyday essentials directly to their doorstep. We look forward to helping introduce goPuff to California and working together to further enhance the experience for BevMo customers and our communities at large,” he said.
In October, goPuff came off a funding round with $380 million, PYMNTS reported. The company was founded in 2013, and Co-Founder Yakir Gola said the idea for the company was to be there when people needed items they’d buy from a convenience store. With a mobile app, the need to go out could be reduced.
In separate news, other delivery companies, including Instacart and DoorDash, are moving beyond only delivering food. Instacart teamed with several companies, including Target and Sephora, to offer delivery, while DoorDash launched virtual convenience stores it calls DashMarts.