The consumer items delivery startup, GoPuff, has struck a deal to purchase RideOS for $115 million, according to the sources. GoPuff will pay the amount in cash and stock; however, the company did not confirm this.
This purchase comes only months following the Philadelphia-headquartered business raised $1.15 billion in a financing round. The total revenue was valued at $8.9 billion, i.e., high from its October- funding round series of $3.9 billion. Last October, GoPuff also generated about $380 million and purchased a retail beverage corporation, BevMo. With this latest acquisition, the company did not disclose its revised estimate.
GoPuff supplies innumerable products, including food and beverages, OTC medicines, cleaning supplies, and many more. It serves more than 650 cities in the country for a flat delivery charge of $1.95. GoPuff claims to give its delivery service within 30 minutes that is accessible 24/7.
Accel, Baillie Gifford, Fidelity, D1 Capital Partners, and Softbank Inc's Vision Fund are among the firm's investors. Established in 2013 by Drexel University's students, Yakir Gola and Rafael Ilishayev, it has more than 400 micro fulfillment centers and above 7000 employees. Apart from its origin, GoPuff operates in Boston, Denver, Dallas, Chicago, and several other cities in America. Lately, the organization claims that it had increased its baby section and added loads of different local products. And, it has expanded into beauty and "better-for-you" goods, which appear to be a combination of organic items and healthier munchies.
In May, GoPuff purchased Fancy Delivery from the United Kingdom, marking the company's first foray into foreign markets. According to GoPuff, RideOS' technology targets fleet optimization, sophisticated dispatch, and smart navigation, which will be crucial for the firm. This is because GoPuff plans to scale in increasingly advanced and heavily populated cities and into newer markets, and RideOS can assist with it. GoStuff intends to leverage its new intellectual property to improve the power of multimodal shipments and shorten delivery times. By adopting RideOS, GoPuff also aims to enhance its unit economics and create new tools to aid its delivery managers and partners in being more coordinated and proficient in the field.
RideOS, a routing and ride-hailing podium founded and driven by former Apple, Google, and Uber workers, sees this purchase as an opportunity to accelerate and continue at the lead of establishing the Instant Needs economy. Its worth was $180 million in its recent financing round, where Next47, a subsidiary of Siemens' venture capital, participated. Funded by Siemens AG, and Sequoia Capital, RideOs total revenues are reportedly projected to be $6.8 million and 145,000 per employee. Its total funding was held at 34 million dollars. FiveAI, Arbe Robotics, and Scantinel Photonics are among RideOS' major rivals.
RideOS CEO Justin Ho mentioned that Gopuff's purpose and the worldwide goal is a natural evolution of RideOS' objective to develop efficient software that will accurately move stuff and individuals across the world.
GoPuff and rideOS are seeking to expand their engineering teams in San Francisco, Pittsburgh, and Berlin.