Last year, SoftBank’s Vision Fund completed one of the largest venture capital ventures in the United States, and GoPuff, a Philadelphia-based venture that distributes junk food, alcoholic beverages and other convenience store items that are now popular with young people on college campuses, is now popular on college campuses.
In August, The Vision Fund led the investment in GoPuff by $750 million, and an additional $250 million is likely to be invested this year, according to people familiar with the matter. GoPuff’s existing investor, Accel, is said to have invested in the huge investment.
The signs are that, at least until last summer, SoftBank had been bullish on logistics and express delivery, even as many companies flocked to the sector and even took a money-burning strategy to win the market.
SoftBank has invested in takeaway company DoorDash and Uber takeaway business UberEats. GoPuff, on the other hand, specializes in the distribution of snacks, beverages, pet food and other goods. In an interview with Daniel Folkman, goPuff’s vice president, eMarketer, a former research firm, Folkman also shared how the company created an e-commerce experience based on impulse purchases. GoPuff’s core consumer base is impulse-buying consumers, and when they’re hungry, there’s a good chance they’ll choose to open an app and buy some snacks, and when they buy it, they might add a cup of soda, a packet of paper or something else, and GoPuff delivers it on demand. Basically, it can be delivered on average half an hour.
GoPuff started out as a college student business, offering alcohol delivery services in 2016, before the user base began slowly shifting to a higher age. They are also introducing items including pet food, according to Daniel Folkman. Gradually, GoPuff discovers that the best consumers are sometimes young parents who choose to use GoPuff’s business when they are left alone at home with their children.
‘With the introduction of the liquor delivery business, we found that consumers’ shopping baskets were getting bigger; they wouldn’t just buy a can of beer, maybe a lot of friends came over that day, and they’d buy plastic cups, snacks, and so on,’ says Daniel Folkman. First of all, we are more focused on the convenience store this field, and second, our business model, we are in stock, and many other takeaway courier scounke scouns are not, which allows us to provide a convenient experience comparable to convenience stores. And by comparison, our shipping costs are very cheap, at $1.295, and more than $49 can be enjoyed with free shipping benefits.