Softbank-backed delivery startup Goff said on Thursday that it would acquire alcoholic beverage chain Bevmo! For $ 350 million, it paved the way for the company to enter the California market.
The agreement means Goff, which currently provides on-demand delivery of home goods in 500 cities, will significantly expand its infrastructure with Bevmo’s 161 stores in California, Arizona and Washington.
The announcement comes less than a month after Goffel raised $ 380 million in a round led by Excel and D1 Partners. Investors also included SoftBank Vision Fund and Luxor Capital, bringing the company’s valuation to $ 3.9 billion. GoPuff was started seven years ago by co-founders Yakir Gola and Rafael Illyayev when he was a student at Drexel University.
“Our idea is, Bevamo! An amazing brand. It’s an iconic brand, great customer base, great distribution network, and we thought it’s a logical step for us and a big step to bring Goff to California, “Gola said.
According to some industry experts the deal makes sense especially during the epidemic.
Nielsen data on liquor sales (which includes grocery and liquor stores) during the epidemic period that began in early March increased by 22% compared to the same period last year, as customers encouraged wine shopping Given because they spend some time at home.
“In-home alcohol consumption and food and beverage delivery both boost demand,” said Darren Cipher, NPD Group’s food industry analyst. “My thinking is that a combination of the two, if executed well, is a good idea because it helps consumers regain some of the restaurant experience they lack.”
For Bevmo !, the partnership is an opportunity to capture more of that increased demand.
Jovia Knotson, CEO of BevMo, said, “By connecting with GoPuff, a company that has created a truly differentiated approach and defined a range of immediate needs, it will allow us to better meet the evolving needs of our consumers , Which includes everyday essentials. ” .
GoPuff’s Gola said it was unclear how the company would leverage BevMo! ‘He said, however, that the company is investigating how best to use the beverage retailer’s stores.
“The idea is using the infrastructure, and the liquor license that BevMo! Has built and the brand and customer base – how we take it and use it as a platform to launch a roundabout in California Are, ”said Gola, some of which face the company’s questions as it thinks about launching in California. He said deal with BevMo! Many would bring California for jobs, but declined to say how many.
Following this week’s California passage of Proclamation Proposition 22, which wins by allowing large economy companies such as Uber, Lyft, and DoorDash to continue using independent contractors.
Gola said that while Goff uses independent contractors as drivers, workers at its 200 micro-fulfillment centers are W-2 workers. He said its business model also differs from delivery rivals Instacart, DoorDash and Postmates, all of which have added convenience stores and drugstore partners since the epidemic.
For starters, he said, goPuff works directly with consumer packaged goods companies to stock its fulfillment centers that the company rents, ranging from diapers to wines. As a result, Gola states that Goffel can make purchases on a scale, placing delivery fees at $ 2 per delivery, and deliveries within 20 to 30 minutes.
Editor’s Note: This story has been updated to reflect that goPuff rents out its fulfillment centers.