GOPUFF

Rafael Ilishayev and Yakir Gola were freshmen at Drexel University in Philadelphia when they noticed a gap: it was midnight, they wanted snacks, and nothing was open or delivered. They started Gopuff in 2013, initially delivering hookah supplies and convenience items from a rented storage unit.

They would buy inventory at Costco, store it, and deliver on demand. The model worked because they controlled the inventory (unlike pure marketplaces) and could operate late at night when competition was zero.

Gopuff operates micro-fulfillment centers (dark stores) stocked with convenience store items — snacks, drinks, alcohol, household essentials, OTC medicine. Customers order through the app and receive delivery in 15-30 minutes.

Unlike DoorDash or Instacart, Gopuff owns its inventory and operates its own warehouses, giving it control over selection and margins. Revenue comes from product markup, delivery fees ($3.95 or free with Gopuff Fam membership at $8/month), and advertising from brands.

Gopuff app (instant delivery, 15-30 min), Gopuff Fam (membership $8/month), Alcohol delivery, Grocery essentials, BevMo! (acquired chain), Gopuff advertising platform

Shrink to survive — close unprofitable locations, focus on dense urban markets where delivery economics work. Increase average order value through better product selection and larger basket sizes.

Build the advertising business (brands paying for placement in the app). Expand private label products with higher margins.

Profitability. Instant delivery has notoriously bad unit economics — the cost of operating warehouses, maintaining inventory, and paying drivers often exceeds what customers are willing to pay for convenience.

Gopuff laid off thousands of employees and closed hundreds of locations in 2022-2023 as investor patience ran out. The core question: can delivering $12 worth of snacks in 20 minutes ever be a profitable business at scale?

SoftBank Vision Fund, D1 Capital Partners, Fidelity, Accel, Luxor Capital, Guggenheim Investments