The company has entered into an agreement to acquire last-mile delivery platform Fancy, based in the U.K. Fancy operates in six U.K. cities, with plans to launch in another five this month. The on-demand delivery service promises a 30-minute delivery window for groceries and daily essentials.
The move comes after Gopuff raised more than $1 billion in a funding round in March, which brought the company’s valuation up to a whopping $8.9 billion. Gopuff’s acquisition also reveals how the company is expanding and investing into global markets, including the U.K. and Europe.
At the time of the funding, Gopuff indicated its plans to expand internationally and across the U.S. The company experienced significant growth during the Covid-19 pandemic, and is second to DoorDash for convenience store delivery services in the U.S.
“At Gopuff, we have been consistently focused on responsible growth, strategically establishing the physical infrastructure and footprint needed to bring Instant Needs to new geographies and customers,” Daniel Folkman, Gopuff senior vice president of business, said in a statement. “Acquiring Fancy is an important first step as we accelerate expansion in the U.K. and Europe and quickly accelerate our investment in the international market.”
Gopuff plans to expand the U.K.-based team while leveraging its own technology and expertise to advance the customer experience with Fancy. Gopuff charges a $1.95 flat fee for its delivery services of groceries and essential supplies. The company--which operates more than 400 sites, including 250 micro-fulfillment centers and more than 160 BevMo! locations--also recently stated it plans to expand its product categories.
“We have been inspired by Gopuff’s innovation and expertise in our industry and appreciated their insights in and support of our company as we’ve sought to expand to new markets in the U.K.,” Fancy CEO Arnie Englander said in a statement. “We are delighted to formally join forces with them through this transaction, which gives Fancy increased access to the Instant Needs category leader’s operational capabilities, deep bench of talented personnel, and infrastructure to fully execute our vision of delivering convenience across the U.K.”