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06/22/2021

On-demand delivery platform Gopuff builds infrastructure for expansion

Dan Berthiaume
Senior Editor, Technology
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Gopuff is acquiring a routing technology provider and a Kentucky liquor store chain as it eyes growth across the U.S. and beyond.

The on-demand delivery platform, which specializes in fulfilling “instant needs” orders such as CPG, food and beverages in as little as minutes, has entered into an agreement to acquire rideOS, a San Francisco-based start-up that builds proprietary technology for advanced routing, on-demand dispatch, and fleet optimization. According to Gopuff, rideOS’ solutions and employees will help it accelerate innovation, power multi-modal deliveries, and continually reduce delivery times.

In the official announcement of the acquisition, Gopuff also cites benefits rideOS will provide as the company launches in “more complex, high-density cities and countries, accelerate(s) geographic expansion, and enter(s) into new verticals.” The company recently established a U.K. presence by purchasing last-mile delivery platform Fancy, and also obtained California-based specialty beverage retailer BevMo! in late 2020. 

rideOS was created in 2017 by two founding members of Uber’s advanced technology division on mapping and self-driving vehicle technology. The rideOS team will now form a wholly-owned and operated subsidiary focused on delivery, routing and logistics technology.

“rideOS is among the best mapping, dispatching and routing technology firms in the industry and we are thrilled to have them lead innovation in key sectors for Gopuff,” said Sharad Sundaresan, Gopuff senior VP, product & growth. “This investment will enable Gopuff to continually improve the customer experience in more complex geographies as we continue to be a leader in the instant needs category worldwide.”

In addition, Gopuff has acquired Liquor Barn, a Kentucky-based independent chain of beer, wine and liquor stores, from private equity firm Blue Equity. The deal provides Gopuff with access to Liquor Barn's infrastructure, customer base, and product assortment, and accelerates its expansion in Kentucky and provides access to more than 80% of Louisville and Lexington residents -- with access to immediate delivery of everyday items, including baby and pet products.
 
Gopuff also plans to leverage Liquor Barn’s infrastructure to work with Kentucky bourbon distributors to expand access to products nationwide, as well as introduce products to new customers within Kentucky via instant delivery. The company will obtain a footprint of 23 The Liquor Barn, Party Mart, and DEP stores across Kentucky. 

“This acquisition brings two customer-focused brands together to introduce new products and experiences while rapidly accelerating Gopuff’s geographic footprint in the region as we continue our expansion,” said Daniel Folkman, Gopuff senior VP of business. “We look forward to welcoming Liquor Barn to the team, becoming more deeply entrenched in the Bluegrass State and serving as a go-to solution for new customers to fulfill their most sought-after instant needs.”