Gopuff co-founder and co-CEO Yakir Gola said on Tuesday that he is stronger than his rivals as delivery startups compete for speed.
He said that the venture companies not only want to deliver diapers, snacks etc at the doorsteps of their customers quickly. He also said that he wants to provide a better customer experience and build a profitable business that can expand across the globe.
“We really believe that we belong to a category,” he said at the grocery store convention in Las Vegas.
Gopuff is part of an increasingly crowded start-up space, similar to the online version of convenience stores and grocery stores. Unlike other shipping companies like DoorDash and Instacart, Gopuff doesn’t get consignment from retail stores. Instead, it has its own network of micro-fulfillment centers (mini-tech warehouses) with inventory. The contract worker receives the order and promptly drops it at the customer’s doorstep in approximately 30 minutes.
Some competitors like Gorilla, Getir and Joker have entered new markets and promise fast delivery in less than 15 minutes.
Still, Gora said it was a veteran in the category. Gopf coined the term “urgent needs” of the company.
Gopf, 2013, when Gola and her co-founder Rafael Ilyishayev were students at Drexel University in Philadelphia and wanted a way to get late-night treats like chips and candy without going to a convenience store. was born in The company has started shipping these products along with hookah and tobacco products.
Currently operating in over 1,000 cities, it handles over 4,000 products ranging from pet food to over-the-counter medicines. Its valuation reached $15 billion in July. It also includes a physical store that doubles as a warehouse. California-based wine chain BevMo! We have acquired two regional alcoholic beverage chains. In December, $350 million was sold, and in June, Kentucky-based Liquor Barn was sold in private quantities.
He said Gopuff is keeping shipping costs low and improving economics by eliminating brokers and selling products and ads to make money. Shipping costs $1.95 per order, with an additional charge of up to $2 for orders containing alcohol.
“If there are too many people involved, such as stores, drivers, delivery platforms, then margins will start to shrink and the customer experience will not be perfect,” he said.
According to Gora, the company is entering a new category, adding 40 or 50 microfilament centers every month. During the pandemic, it added household items such as cleaning products and at-home COVID-19 testing. We also started distributing hot dishes like coffee, breakfast sandwiches and pizza at some places.
The average clientele in their late twenties and early thirties is still young and deformed, but the proportion of college students is declining, he said. He said that the fastest growing category year-on-year is baby products.