Gopuff CEO Yakir Gola cites resistance to rush for instant deliveries

Gopuff CEO Yakir Gola cites resistance to rush for instant deliveries

As delivery start-ups clash to find the fastest, Gopf co-founder and co-CEO Yakir Gola said on Tuesday he has the power to outdo his rivals.

He added that the venture-backed company isn’t just interested in getting diapers, snacks and more right on the doorstep of customers. He added that he wanted to provide a better customer experience and build a profitable business that could expand across the world.

“I really believe we’re in the category of one,” he said at the Las Vegas grocery convention.

Gopuff is part of an increasingly crowded field of start-ups that resemble the online version of convenience stores and grocery stores. Unlike other delivery companies like DoorDash and Instacart, GoPuff does not receive merchandise from stores from retailers. Instead, it has its own network of micro-distribution centers – high-tech mini-warehouses – full of inventory. The contract workers pick up the orders and drop them off with customers in around 30 minutes.

Some competitors, such as Gorilla, Getir, and Joker, have entered new markets and promise fast delivery in 15 minutes or less.

Still, Gola said Gopf is a category veteran. Gopf coined a term for the group: companies with “urgent needs”.

Gopf was born in 2013, when Gola and her co-founder, Rafael Ilyishayev, were students at Drexel University in Philadelphia and wanted a way to get late night snacks like chips and candy without running to a convenience store. . The company has started to deliver these products along with hookah and tobacco products.

Today, it operates in more than 1,000 cities and offers more than 4,000 items ranging from pet food to over-the-counter medications. Its valuation reached $ 15 billion in July. And that includes physical stores, which also serve as warehouses. It has acquired two regional alcoholic beverage chains: the Californian liquor chain Bevmo! for $ 350 million in December and for an undisclosed amount to Kentucky-based Liquor Barn in June.

He said Gopuff keeps shipping costs low and improves profitability by cutting out middlemen and making money selling products and advertisements. Its shipping cost is $ 1.95 per order, with an additional $ 2 charge for orders that include alcohol.

“Once many parties are involved – the store, the driver, the delivery platform itself – you start to squeeze the margins and the customer experience isn’t flawless,” he said. declared.

Gola said the company is adding 40 or 50 micro-execution centers every month and moving into new categories. During the pandemic, it added household items such as cleaning supplies and COVID-19 home testing. It has also started delivering hot meals, such as coffee, breakfast sandwiches and pizza, to some locations.

That said, the average clientele still tends to be younger, in their late twenties or early thirties, but college students are a declining percentage. The fastest year-over-year growth for Gopuff has been in the baby products category, he said.

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