Gopuff Plans Expansion After Landing $1B Investment

Gopuff is valued at about $15 billion after the Philadelphia-based delivery company raised $1 billion in its most recent funding round, with Guggenheim Investments, Hedosophia and SoftBank Vision Fund 1 among the investors. The company’s value jumped almost 70 percent from the $8.9 billion it hit in March.

Gopuff will use the latest funds raised to continue its expansion in North America, the U.K. and Europe beyond the 450 locations where it already operates, as well as for hiring and technology investments. Its drivers deliver food, alcohol and medicines for a flat delivery charge ($1.95).

The company added essential item delivery during the COVID-19 pandemic through a partnership with Uber Technologies that was finalized in May.

Earlier this month, Gopuff launched Gopuff Kitchen, which brings freshly cooked food to customers, using mobile kitchens and the company’s micro-fulfillment centers. “Gopuff leverages both its own recipes and ingredients from local partners to offer a mix of healthy and indulgent menu items, including hot, freshly prepared pizza, chicken tenders, salads, fresh-brewed coffee and matcha, breakfast sandwiches and more for breakfast, lunch, dinner and late-night,” the company said in a news release.

Gopuff’s “innovative modular design” allows the kitchen to adapt menus and equipment according to the communities it serves. So far, the new service has delivered hundreds of thousands of orders as part of a pilot program in a number of U.S. cities, including Philadelphia, Miami, Nashville, Phoenix and Austin, with plans to add more kitchens by the end of 2021.

Gopuff acquired the app-only coffee shop Bandit last year, and earlier this year acquired Liquor Barn, an independent chain out of Kentucky that sells beer, wine and liquor. The company also added U.K.-based delivery platform Fancy and fleet management company rideOS for multimodal and shorter deliveries.

Gopuff is mulling going public later this year, according to a Reuters report.