A US-based on-demand food, goods, and alcohol delivery service, Gopuff, has acquired the marketplace/mapping service startup, RideOS, for US $115 million, according to sources familiar with the deal. The news of the acquisition was made public on June 17, 2021.
This acquisition comes just a few months after Gopuff announced a US $1.15 billion funding round at a US $8.9 billion valuation, up from US $3.9 billion in October. The company also raised US $380 million last year and bought a beverage retailer, BevMo. Gopuff did not, however, disclose its updated valuation with this new acquisition.
Gopuff provides delivery of almost every merchandise from cleaning and pet products to over-the-counter medicine and food in over 650 United State cities, charging US $1.95 for delivery that is carried out in 30 minutes or less and is available either very late or even around the clock.
Purpose of the acquisition
As Gopuff prepares to expand to more high-density and complex cities, the company believes RideOS’s technology geared toward complex dispatch, advanced routing, and fleet optimization will be crucial. The company aims to use its new IP to better power multimodal deliveries and decrease delivery times. By acquiring RideOS, Gopuff also hopes to develop its unit economics and design new devices to help both its partners and delivery managers be more efficient and organized.
Trends in the industry
This acquisition is especially significant for Gopuff as the company plans to expand into New York this year, a location where residents expect high rent prices to come with the opportunity to have anything from diapers to hummus delivered at any time during the day or night. The company has also entered the beauty products and health-conscious product market. Gopuff acquired UK-based Fancy Delivery last month, noting its first entry into international markets.
RideOS sees this acquisition as a chance to scale and stay at the forefront of defining the Instant Needs economy. According to co-founder and CEO of RideOS, Justin Ho, “Gopuff’s mission and global objective to be the world’s go-to solution for instant everyday needs is a simple extension of RideOS’ goal to develop software that efficiently moves things and people all over the world. Given Gopuff’s exponential development, we expect to significantly boost our headcount by the year’s end, growing our presence in Silicon Valley, Berlin, and Pittsburgh.”
Gopuff is a mobile app-based digital delivery service that delivers products such as over-the-counter medicine, baby food, and alcohol. Gopuff began as a snack delivery service and quickly grew into a national essential and food delivery service, and later, in some markets, alcohol delivery. Today, Gopuff is one of the fastest-growing delivery services, operating around the clock in most major markets.
RideOS has a mission to accelerate the safe, global roll-out of next-generation transport. The startup develops cutting-edge transportation marketplace and mapping technologies. RideOS collaborates with various partners, from Silicon Valley startups to industrial OEMs, to companies operating ride-hailing services towards revolutionizing next-generation
transport systems. Today, its ETA engine and self-driving vehicle routing service are used by mobility service companies to provide on-demand transportation. The startup consists of highly experienced and accomplished engineers that previously worked at companies like Apple, Google, Tesla, and Uber.
Founded in 2017 by Chris Blumenberg and Justin Ho, RideOS has its headquarters in San Francisco, California, United States.
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