Gopuff Explained

Industry:Online food ordering
Type:Private
Services:Online convenience delivery
Location:Philadelphia, Pennsylvania
Subsid:BevMo!
Area Served:United States, United Kingdom
Revenue: US$1.2 billion (2023)
GoBrands, Inc.

GoBrands, Inc.,[1] [2] doing business as Gopuff, is an American consumer goods and food delivery company headquartered in Philadelphia, Pennsylvania.[3] [4] [5] The company delivers foods and goods typically found in convenience stores in more than 500 cities, suburbs, and towns across the United States as of 2025.[6] It also operates in the United Kingdom, following an acquisition of Newcastle upon Tyne-based Fancy.[7] [8]

As of May 2024, the company was valued at $5.45 billion.[9]

History

Gopuff is headquartered in Philadelphia, Pennsylvania. The company was founded in 2013 by former Drexel University students Yakir Gola and Rafael Ilishayev, who bonded over their shared Jewish ancestries.[10] Gopuff was originally an on-demand hookah supply delivery service, "an app service to deliver college students beer, condoms, junk food and other guilty pleasures", but expanded to delivering food and goods typically sold in convenience stores.[11] The company began offering delivery services in Philadelphia before expanding into other cities, including New York, Chicago, Miami, and others.[12] [13] [6]

In 2016, Gopuff raised $8.25 million in A round funding.[14] In 2019, the company reportedly raised $750 million in funding from SoftBank, with a commitment for up to $250 million more.[15] [16] Also in 2019, Gopuff opened a new headquarters in the former Finnigan's Wake Pub ("once ranked among the top 25 douchiest bars in Philadelphia"[17]), building in Northern Liberties.[18] [19]

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.[20] In November, Gopuff agreed to purchase BevMo! for $350 million.[21] The alcoholic beverage chain has 161 stores in California, Washington and Arizona.[22] [23]

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.[24] [25] That month, it was listed on CNBC's Disruptor 50 list.[26]

In April 2021, Gopuff added the first independent board member, Betsy Atkins, to its board.[27]

In May 2021, Gopuff acquired Fancy, a UK-based food delivery service.[7] Also in May, Gopuff and Uber Eats announced a partnership to sell products from Gopuff through the Uber Eats app.[28] [29]

In June 2021, Gopuff acquired Liquor Barn (liquorbarn.com),[30] [31] a Louisville, Kentucky-based alcoholic beverage retail chain, and announced the acquisition of RideOS for $115 million.[32] [33]

In February 2022, Gopuff signed a multi-year partnership deal with McLaren.[34]

Challenges and layoffs

Gopuff has faced a significant decline since the COVID-19 pandemic, laying off a significant portion of its workforce in an attempt to be profitable, resulting in a significant decline in service quality.[35]

In July 2022, Gopuff announced closure of 76 of its U.S. warehouses and layoffs impacting about 1,500 employees. At the time, the company still intended to expand services at other high-performing locations.[36]

In October 2022, the company conducted more layoffs, firing some 250 employees.[37]

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 company's driver workforce. At this time, the two companies were also reported to be in talks for Gopuff orders to be placed through the Uber Eats app. Additionally in this time frame, Gopuff laid off 2% of its workforce, or about 100 employees.[38]

In 2024, the company laid off about 600 employees, or about 6% of its global staff.

Services and operation

Gopuff primarily delivers goods typically found in convenience stores such as snacks, drinks, and household goods.[39] Beer, wine, and spirits are available for delivery in some markets.[40] The company owns warehouses that stock many of the products it delivers.

In December 2015, Gopuff launched a beer delivery service called goBeer.[41] In May 2016, they launched an alcohol delivery service called goBooze.[42] [43] [44] These services are organized under the umbrella of goBrands Inc.

Controversies and privacy issues

Gopuff has faced many significant controversies over the years, including accusations of misclassifying employees as independent contractors, violating labor laws, and selling alcohol to minors. These issues have led to fines, lawsuits, and the revocation of their alcohol delivery license in some areas.

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. 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.

In 2021, GoPuff was accused of misclassifying its delivery drivers as independent contractors, preventing them from receiving benefits like minimum wage, overtime, and unemployment insurance. This misclassification has led to lawsuits and fines, including a $6.2 million fine in Massachusetts for misclassification and other labor law violations[46]

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.[47] [48]

Notes and References

  1. Web site: 2015-06-25 . Gobrands, Inc. :: Delaware (US) :: OpenCorporates . 2024-04-14 . OpenCorporates.
  2. Web site: 2024-02-08 . Gopuff Privacy Center . 2024-04-14 . Gopuff . The GoBrands Inc. group of companies (operating as “Gopuff”),.
  3. Web site: Debter. Lauren. Beer, Band-Aids And Ben & Jerry's: Why Venture Capitalists Gave Two 27-Year-Olds $1 Billion To Build The Ultimate Online Convenience Store. 2020-08-31. Forbes. en.
  4. News: Donaldson James. Susan. Late-Night Cravings Inspired goPuff, a Business That's Raised Over $8M. 2017-07-11. NBC News.
  5. News: Zapkin . Nina. This Fast-Growing Startup Wants to Make Visiting the Convenience Store Obsolete. November 21, 2016 . Entrepreneur.
  6. Web site: Where Does Gopuff Deliver? . 2025-04-13 . www.gopuff.com . en-US.
  7. Web site: Tanenbaum. Michael. 2021-05-07. Gopuff acquires U.K.-based Fancy to kickstart international expansion. PhillyVoice. english.
  8. News: Zakrewski . Cat . GoPuff Raises $5M to Back Delivery of Smokes, Snacks and More. June 3, 2016. The Wall Street Journal.
  9. Web site: 2024-05-09 . GoPuff Marked Down Significantly in the Prime Unicorn Index - Prime Unicorn Index . 2025-04-13 . www.primeunicornindex.com . en-US.
  10. News: Alumni Founders of GoPuff Dedicate Torah Scroll to Drexel Chabad - Two 25-year-old graduates channel their business success . 5 November 2025 . . en.
  11. News: Annear. Steve. 2014-09-11. Hookah Delivery Company 'GoPuff' Changes Up Its Business Model. Boston Magazine. January 9, 2022. August 20, 2017. https://web.archive.org/web/20170820041559/http://www.bostonmagazine.com/news/blog/2014/09/11/gopuff-changes-delivery-service-to-include-food/. dead.
  12. Web site: DiStefano. Joseph N.. May 8, 2020. With global cash, GoPuff grows past pot-friendly past; neighbors complain. 2020-07-01. The Philadelphia Inquirer. en-US.
  13. Web site: Barr. Diana. 4 April 2019. Need snacks, diapers? On-demand retailer expands delivery to St. Louis. 2020-07-01. St. Louis Business Journal.
  14. Web site: Young. Vicki M.. 2016-06-03. Delivery Service GoPuff Closes $8.25M Series A Round. 2020-07-01. WWD. en.
  15. Web site: Murrell. David. 2020-01-21. SoftBank Quietly Invested $750 Million in Delivery Startup GoPuff Last Summer. 2020-07-01. Philadelphia Magazine. en-US.
  16. Web site: Rothstein. Matthew. January 21, 2020. SoftBank Leads $1B Funding Round For Warehouse-To-Consumer Delivery App GoPuff. 2020-07-01. Bisnow. en.
  17. Web site: Offices planned for Finnigan's Wake building at 3rd and Spring Garden . . 5 November 2025.
  18. Web site: Stangel. Luke. August 5, 2019. Fast-growing Philadelphia startup inks delivery deal with Graduate Hotels . bizjournals.com. 2020-05-01.
  19. News: Tanenbaum . Michael. Finnigan's Wake building in Northern Liberties will house new goPuff HQ. November 13, 2018 . Philly Voice.
  20. Web site: Ha . Anthony . 8 October 2020 . Delivery startup Gopuff raises $380M at a $3.9B valuation . live . https://web.archive.org/web/20201010163042/https://social.techcrunch.com/2020/10/08/gopuff-funding/ . October 10, 2020 . 2020-10-08 . TechCrunch . en-US.
  21. Web site: Ha. Anthony. 5 November 2020. Delivery startup goPuff acquires BevMo for $350M. 2020-11-06. TechCrunch. en-US. December 11, 2020. https://web.archive.org/web/20201211112202/https://social.techcrunch.com/2020/11/05/gopuff-acquires-bevmo/. live.
  22. News: Chang. Andrea. 2020-11-05. BevMo acquired in $350-million deal as booze deliveries surge. 2020-11-09. Los Angeles Times. en-US.
  23. News: Ha . Anthony . Delivery startup goPuff raises $380M at a $3.9B valuation . TechCrunch . 8 October 2020.
  24. Web site: Ha . Anthony . March 23, 2021 . 'Instant needs' delivery startup Gopuff raises $1.15B at an $8.9B valuation . 2021-04-02 . TechCrunch . en-US.
  25. Web site: Palmer . Annie . 2021-03-23 . SoftBank-backed delivery start-up Gopuff valued at $8.9 billion in new funding round, more than double from five months ago . 2021-04-02 . CNBC . en.
  26. News: These are the 2021 CNBC Disruptor 50 companies. CNBC. 25 May 2021. 20 July 2021.
  27. Web site: April 12, 2021. Gopuff Appoints Betsy Atkins as First Independent Board Member. 2021-05-05. finance.yahoo.com. en-US. dead. https://web.archive.org/web/20210505193518/https://finance.yahoo.com/news/gopuff-appoints-betsy-atkins-first-150000836.html. May 5, 2021.
  28. Web site: Holland. Frank. 2021-05-05. Uber partners with Softbank-backed Gopuff to deliver everyday essentials, from snacks to toothpaste. 2021-06-14. CNBC. en.
  29. News: Chapman. Lizette. Uber Taps SoftBank-Backed GoPuff to Expand Grocery Delivery. 2021-06-14. Bloomberg.com. 4 May 2021.
  30. Web site: Deirdre. Bosa. Laura. Batchelor. 2021-06-21. Delivery company Gopuff acquires Liquor Barn, continuing its retail expansion. 2021-06-22. CNBC. en.
  31. Web site: Liquor Barn Sold to National Delivery Service Gopuff.. The Lane Report. 21 June 2021.
  32. News: Gopuff to Buy Siemens-Backed RideOS in $100 Million-Plus Deal. Bloomberg. Liana. Baker. 17 June 2021. 20 July 2021.
  33. News: Delivery service Gopuff acquires rideOS for $115 million. TechCrunch. Rebecca. Bellan. 18 June 2021. 20 July 2021.
  34. Web site: February 15, 2022 . McLaren Racing - McLaren Racing announces partnership with instant delivery platform Gopuff . November 18, 2022 . .
  35. Web site: Malone . Katie . 2024-05-16 . Gopuff lays off 6% of workforce, seeking profitability . 2025-04-14 . Technical.ly . en.
  36. Web site: Bursztynsky . Jessica . 2022-07-12 . Delivery startup Gopuff cuts 10% of its global workforce and closes 76 U.S. warehouses . CNBC.
  37. News: Davalos . Jackie . 19 October 2022 . Rapid-Delivery Startup Gopuff Fires Hundreds in Third Round of Layoffs . 19 October 2022 . Bloomberg.
  38. News: Lee . Dave . 2023-03-27 . Gopuff turns to rival Uber for rapid delivery help . 2023-11-14 . Financial Times.
  39. News: Wisenberg Brin . Dinah. Delivery start-up goPuff fills overnight needs — and whims. September 17, 2016. CNBC.
  40. Web site: Japhe. Brad. April 29, 2020. These Are The Top-Selling Alcoholic Beverages During The Coronavirus Lockdown. 2020-07-01. Forbes. en.
  41. News: Hilario . Kenneth. Local beer delivery company eyes expansion in 2016. December 28, 2015. Philadelphia Business Journal.
  42. Web site: Dallke. Jim. July 11, 2018. Alcohol Delivery App goBooze Launches in Chicago. 2020-05-01. americaninno.com.
  43. Web site: Hilario. Kenneth. May 10, 2016. On-demand delivery company launches new 'booze' service in D.C.. 2020-05-01. bizjournals.com.
  44. News: Shah . Angela. Philadelphia's goBooze Starts Beer, Wine Delivery in Austin. December 13, 2016. Xconomy. dead . https://web.archive.org/web/20161214171621/http://www.xconomy.com/texas/2016/12/13/philadelphias-gobooze-starts-beer-wine-delivery-in-austin/ . December 14, 2016.
  45. News: Hill . Kashmir . 2017-07-03 . No, Your Phone Isn't Secretly Recording You . 2018-07-05 . Gizmodo . en-US.
  46. Web site: O'Brien . Sara Ashley . 2021-08-20 . This $15 billion startup promises 30-minute deliveries. Now its facing a worker backlash CNN Business . 2025-04-14 . CNN . en.
  47. News: Katie Johnston . March 30, 2023 . AG fines Gopuff delivery company $6.2 million for misclassifying drivers, other violations . The Boston Globe.
  48. News: Wiessner . Daniel . 30 March 2023 . Massachusetts fines delivery startup Gopuff $6.2 mln in worker pay dispute . Reuters . en.

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