Last year, SoftBank’s Vision Fund completed one of the largest venture capital investments in the United States. This startup, GoPuff, is located in Philadelphia. Its main business is the distribution of junk food, alcoholic beverages and Other convenience store items are currently popular on college campuses.
According to people familiar with the matter, in August last year, the Vision Fund led the investment and completed a $ 750 million investment in GoPuff, and may add another $ 250 million this year. SoftBank used to use this investment routine. It is said that in this huge investment, GoPuff’s existing investor Accel participated in the investment.
These signs indicate that at least until last summer, SoftBank had always been optimistic about the logistics and express delivery sectors. Even though many companies are now in the field, some companies have even adopted money burning strategies to win the market.
At present, SoftBank has invested in DoorDash, a U.S. food delivery company, and UberEats, an Uber food delivery business. GoPuff specializes in delivering snacks, drinks, and pet food. In an interview with GoPuff Daniel Folkman, eMarketer, Folkman also shared how the company created an e-commerce experience based on impulse purchases.
The core consumer group of GoPuff is consumers who buy impulsively. When they are hungry, there is a high probability that they will choose to open an app to buy some snacks. When they buy it, they may add a glass of soda and a pack of paper. Or some other things and GoPuff basically achieves an average half an hour delivery through on-demand delivery.
GoPuff started out as a college student business. It began to provide alcoholic beverage delivery services in 2016, and then the user group began to slowly move to a higher age level. At the same time, according to Daniel Folkman, they are also introducing some commodities, including pet food. Gradually, GoPuff found that the best consumers are sometimes young parents. When they bring children alone at home, they have no avatars. At this time, they will choose GoPuff’s business.
Daniel Folkman said that as we introduced the wine delivery business, we found that consumers ’shopping baskets have grown; they do n’t just buy a can of beer, maybe there are a lot of friends who come over on the day, they will buy again Plastic cups, snacks, etc. First of all, we are more focused on the field of convenience stores, followed by our business model.
We have inventory ourselves, and many other takeaway express businesses do not have it. This allows us to provide a convenient experience comparable to that of convenience stores. And by comparison, our shipping is very cheap, only $ 1.295, and free shipping benefits over $ 49.