GoPuff, a company based in Philadelphia, is a rapidly growing startup focused on delivering everyday essentials – including over-the-counter medications, baby supplies, and alcoholic beverages – to customers within a 30-minute timeframe.

According to co-CEO Yakir Gola, alongside his co-founder Rafael Ilishayev, their primary objective is to establish GoPuff as the leading platform for quick delivery of items such as household products, baby food, snacks like ice cream, and even alcoholic drinks, available around the clock.

Despite maintaining a relatively quiet presence in the media, GoPuff currently operates in over 500 cities across the United States, with recent expansions into locations like Dallas, Miami, Detroit, Minneapolis, and Houston. The company has successfully secured a total of $1.35 billion in funding, including a newly announced investment of $380 million which establishes a company valuation of $3.9 billion.

This latest funding round was spearheaded by Accel and D1 Capital Partners, with additional investment from Luxor Capital and SoftBank Vision Fund. Both Accel and SoftBank had previously invested in GoPuff.

Ryan Sweeney, a partner at Accel, stated, “Accel’s initial investment in goPuff in 2018 was driven by the team’s forward-thinking vision for on-demand delivery and their dedication to developing the infrastructure necessary for their distinctive, vertically integrated business model.” He continued, “GoPuff’s concentrated strategy has consistently yielded excellent unit economics alongside nationwide growth. We are pleased to continue supporting Yakir, Rafael, and the entire goPuff team as they progress.”

Despite accumulating substantial financial resources, Gola emphasized that GoPuff has consistently prioritized “fiscal responsibility” since its inception. Initially, the founders personally handled deliveries and financed their early growth through generated revenue and profits.

“From the beginning, our focus was on building a profitable business with genuine margins,” he explained.

To accomplish this, Gola highlighted the startup’s “vertically integrated model,” which involves direct purchasing from manufacturers and subsequent delivery to consumers via a network of 200 “micro-fulfillment” centers – operated by GoPuff employees – and a team of independent delivery drivers.

Beyond enabling GoPuff to “profit from the products we sell” instead of solely relying on delivery fees, Gola noted that this approach allows the company to offer a diverse selection of both national and local brands, and to “continuously introduce new products while phasing out underperforming items.”

The company experienced a significant surge in demand during the pandemic, and Gola affirmed that GoPuff also prioritized the safety of its workforce by providing protective equipment to all employees and drivers, and by establishing an emergency fund to support those who became ill.

In addition to the funding announcement, GoPuff revealed the appointment of Jocelyn Wong, formerly CMO at Lowe’s, as its first chief customer officer; Jonathan DiOrio, previously global head of fintech and U.S. business development at Uber, as its first chief business officer; and Rekha Singh, a former engineering executive at TripAdvisor, as vice president of engineering.

Looking forward, as competitors like Amazon and Uber also expand their rapid delivery services, Gola stated that GoPuff will continue to distinguish itself through several key strengths.

“GoPuff is unique; we had to develop everything independently,” he said. “From our location-specific inventory system to numerous aspects of our technology, it’s all proprietary. Furthermore, by controlling our inventory, we can guarantee customers receive precisely what they ordered. This dedication to our customers is how we intend to succeed in the long run, and it’s what has brought us to our current position.”