Who Owns GoPuff?
GoPuff is a private company founded by Yakir Gola and Rafael Ilishayev in 2013. Rafael Ilishayev and Yakir Gola are the co-owners of GoPuff.
This Online platform specializes in home delivery faster than other services, eliminating the need for convenience stores and picking up your must-have items.
GoPuff Company History
After forming the company back in 2013 while they were sophomores at the local Drexel University in Philadelphia, they began to take advantage of the constant need for immediate items.
Especially considering they lived in a crowded city where not every college student had access to a vehicle, having a line delivery service was essential to buying items that would otherwise not be possible from a faraway location.
How Did GoPuff Start?
Rafael and Yakir were friends at Drexel University when they were undergraduates between 2012 and 2016.
They realized that their mutual friend, Yakir, was the only friend with a car – and he was constantly tasked with the burden of getting items for his friends or shuttling them between convenience and grocery stores.
It was then that the two co-founders had an idea to capitalize on the lack of doorstep delivery.
GoPuff Net Worth 2023
GoPuff has a high net worth in 2023, despite undergoing some unforeseen labor struggles and difficulties expanding in Europe.
GoPuff has grown approximately 3x faster than its initial projections, even though the company’s labor costs are hindering progress.
Even So, GoPuff’s revenue broke $2 billion last year in 2021.
Furthermore, GoPuff has raised $1.5 billion in an X raise, increasing its estimated total value to as high as $40 billion.
After its first initial raise in July of 2021, bringing the company to a total valuation of approximately $15 billion, this latest increase shows the exponential growth of this startup company.
Understanding the growing trend of GoPuff and the GoPuff statistics can provide insight as to the upward movement of this company:
- 2019 GoPuff revenue – $200 million
- 2020 GoPuff revenue – $340 million
- 2021 GoPuff revenue – $1 billion
GoPuff Users:
- 2019 – 0.3 million
- 2020 – 1.8 million
- 2021 – 2.6 million
GoPuff Downloads:
- 2018 – 0.4 million
- 2019 – 1.8 million
- 2020 – 4.4 million
- 2021 – 7.1 million
- 2022 – 11.3 million
GoPuff Valuation:
- 2019 – $4 billion
- 2020 – $8.9 billion
- 2021 – $15 billion
GoPuff Founders Net Worth 2023
In addition to the company’s net worth in 2021 and projected valuation for 2023, the founders of GoPuff have seen a wealth of profit after the initial inception of the business.
Although the founders’ net worth is unknown at this time, they have been listed in Forbes in 2017 as one of the 30 Under 30 Entrepreneurs in the ‘Retail and E-commerce category.
At that time, the company had raised $8.25 million to grow its convenience store in Philly – now, we can see how the company has increased its valuation to over $40 billion, dramatically increasing the founders’ net worth in the upcoming year.
How Does GoPuff Make Money?
Although we know that GoPuff is a hugely popular company worldwide, users may be curious how this business makes a profit.
This convenience delivery platform makes money via product markups, advertising, subscription, and shipping fees.
Understanding the GoPuff entrepreneurial business model is key to seeing how successful this business is.
There are a few things that set this business apart from other similar delivery companies (like Uber Eats) on the market today:
- GoPuff makes money whenever they sell a product through the app or website.
- GoPuff owns the products, which provides current data on the market availability.
- Order fulfillment is faster with GoPuff due to the efficiency between warehouse workers and delivery drivers (leading to super fast deliveries).
- Every micro fulfillment center has long working hours to account for fast delivery times around the clock.
How Is GoPuff So Cheap?
As we know, GoPuff owns local warehouses and distribution centers to cut down on the costs of acquiring products from third-party sites and warehouses.
Instead, GoPuff has access to the products and uses its own workers to find and distribute the products to the delivery driver for faster and more efficient service.
Plus, GoPuff is cheap for users because of the numerous revenue sources directed back to the corporation:
- Delivery Fees – Every time a customer orders their beloved facial moisturizer or Ramen noodles on the GoPuff app or website, there is a standard $1.95 delivery fee (don’t worry, it won’t go up during busier times). However, this delivery fee covers the delivery costs to keep the app affordable.
- Membership – GoPuff Fam is a membership program that offers benefits, deals, and perks to service users. Instead of paying a delivery fee on all orders, Gopuff customers can simply pay a monthly fee of $5.95 to cover all order deliveries. As customers begin to use the app more, this will pay off – for GoPuff itself, it helps incentivize customers to use this app over other food delivery options.
- Advertising – The following way that GoPuff can remain affordable for customers is by placing products and services on its website and app through advertising. Since GoPuff customers browse the products and view the advertising, it helps the company make money even while customers simply open the app.
- Markup – The last way that GoPuff can stay so affordable for customers is through markups. GoPuff is unique from other food delivery services because it uses its own inventory and services to purchase, organize, and deliver products. Therefore, GoPuff makes money by cutting out the middleman and sticking with just its own brand.
Wrapping Up
Whatever you need to be delivered to your doorstep, GoPuff can likely bring it to you.
With many locations across the United States and Europe, you can get food, household items, alcohol, and health products quickly delivered to you by reliable GoPuff workers at almost any time of day.
