Advertisement
06/23/2021

Gopuff Makes Two Acquisitions

Gopuff, a consumer goods micro-fulfillment company, has made two recent acquisitions to improve its market position.

The acquisitions come after Gopuff raised $1.15 billion in March during a funding round. The company, which has seen huge growth since the start of the COVID-19 pandemic, also recently launched a retail media network with a new platform powered by CitrusAd.

Gopuff is also acquiring rideOS, an enterprise startup that builds technology for advanced routing, on-demand dispatch and fleet optimization. The acquisition will enable Gopuff to accelerate its geographical expansion as it enters new markets and reduce delivery times, the company stated. The move comes as the on-demand delivery sector continues to heat up with more competition, with ever-faster delivery times. In fact, the sector has become so large that DoorDash, which entered into grocery delivery last year, is set to become the third largest e-commerce banner.

Gopuff believes acquiring rideOs will enable it to improve its logistics and operations, while also improving its delivery times.

“rideOS is among the best mapping, dispatching and routing technology firms in the industry and we are thrilled to have them lead innovation in key sectors for Gopuff,” Sharad Sundaresan, Gopuff’s senior vice president of product & growth, said in a statement. “This investment will enable Gopuff to continually improve the customer experience in more complex geographies as we lead and define the Instant Needs category worldwide.”

Gopuff and rideOS are currently hiring for a number of roles, including senior software engineers focused on optimization, routing, and maps, backend engineers, product managers, data scientists and product designers in Berlin, San Francisco and Pittsburgh. 

Days after announcing the acquisition, Gopuff also bought Liquor Barn, an Kentucky-based independent chain of beer, wine and liquor stores, from private equity firm Blue Equity. The move further cements Gopuff’s place in the instant needs category by gaining Liquor Barn’s infrastructure, customer base and product assortment.

“We’re thrilled to partner with Liquor Barn, an incredible brand and team with loyal customers, as we bring the Gopuff experience to new customers across Kentucky,” Daniel Folkman, Gopuff’s senior vice president of business, said in a statement. “This acquisition brings two customer-focused brands together to introduce new products and experiences while rapidly accelerating Gopuff’s geographic footprint in the region as we continue our expansion. We look forward to welcoming Liquor Barn to the team, becoming more deeply entrenched in the Bluegrass State and serving as a go-to solution for new customers to fulfill their most sought-after instant needs.”

The acquisition also further increases Gopuff’s presence in Kentucky, with the ability to reach 80% of residents in Lexington and Louisville and offer products across a number of categories, including baby and pet products, cleaning supplies, over-the-counter medicine, food and alcohol, along with local favorites. The deal also enables Gopuff to work with distributors nationwide to support the local Kentucky bourbon industry.

Gopuff will take on the 23-store footprint of Liquor Barn, Part Mart and DEP as part of the deal, while Gopuff and Blue Equity will work together to integrate Liquor Barn’s customer loyalty, talent and industry expertise.

“As a customer-focused business, we are delighted to partner with Gopuff given their extraordinary commitment to the customer experience,” said Jonathan Blue, chairman of Blue Equity and Liquor Barn. “Through this partnership, we will continue to deliver beer, wine and spirits and will add thousands of new items that our customers need in everyday life. We are excited to join Gopuff in their mission and forge the future of the Instant Needs category together.”