goPuff Exploring Acquisition Of Fancy Delivery
Delivery company goPuff, which has its own microfulfillment network to deliver convenience store products the Uber-style way, could take over UK-based Fancy Delivery, according to a report.
The terms of the deal are still being worked out, according to the report, but the deal is not final. An agreement could come in the next few weeks.
Fancy was launched late last year and has a similar model to goPuff. It offers quick delivery services for items such as over-the-counter medicines, baby food, and alcohol. Some have called it a “mini-GoPuff”, according to the report.
According to the report, the two companies are essentially vertically integrated, contracting their own driver fleets as well as running their own microfulfillment centers, which are “dark stores” open to online ordering and ultra-local Supplies are used.
If the deal goes through, it could signal goPuff’s entry into the UK market by pursuing a strategy of buying a similar local player rather than starting from scratch, the report said.
According to reports, Fancy will continue to operate under its own brand when the deal goes through. In the meantime, goPuff intends to invest in its growth, for example by hiring and operating new fulfillment centers.
GoPuff was recently valued at $ 3.9 billion, the report said, and currently operates in 500 US cities.
In particular, goPuff is no stranger to acquisitions, as it recently bought BevMo, a specialty drinks retailer on the west coast. The deal was closed for $ 350 million. The acquisition was touted as strongly due to BevMo’s loyal customer base and the “deep infrastructure” and “cult brand” that could go well with goPuff.
With the acquisition of BevMo, which operates in over 100 stores in three states, goPuff has gained more microfulfillment center options and will now work to reach customers in 30 minutes or less with its ever-growing inventory.
NEW PYMNTS DATA: BUY NOW, PAY LATER, CONSUMER STUDY
About: Buy Now, Pay Later: Millennials and the Changing Dynamics of Online Credit, a collaboration between PYMNTS and PayPal, examines the demand for new flexible credit options and the way consumers, particularly in the millennial demographics, are paying online. The study is based on two surveys of nearly 15,000 US consumers.