On-demand goods, food and alcohol delivery service Gopuff has acquired fleet management platform rideOS for $115 million, sources familiar with the deal say.
This acquisition comes just a few months after the Philadelphia-based startup announced a $1.15 billion funding round at a $8.9 billion valuation, up from $3.9 billion in October. Last fall, the company also raised $380 million and bought BevMo, a beverage retailer. Gopuff did not share its updated valuation with this new acquisition.
Gopuff provides delivery of everything from cleaning and pet products to over-the-counter medication and food in more than 650 U.S. cities, charging $1.95 for delivery that happens in 30 minutes or less and is available either very late or even 24/7.
This will be incredibly important as the company looks to expand into New York this year, a place where residents expect high rent prices to come with the opportunity to have anything from hummus to diapers delivered at 4 a.m. Speaking of diapers, Gopuff told Stock Market Pioneer it has just doubled its baby category and added hundreds of new local products, and that it has expanded to delivering beauty products and “better-for-you” products, which seem to be a mix of organic stuff and healthier snacks.
Gopuff also acquired U.K.-based Fancy Delivery in May, marking its first entrance into international markets. As the company prepares to expand in more complex and high-density cities and enter into new verticals, Gopuff says rideOS’s tech geared toward advanced routing, complex dispatch and fleet optimization will be essential. The company aims to use its new IP to better power multimodal deliveries and reduce delivery times.
By acquiring rideOS, Gopuff also hopes to improve its unit economics and develop new tools to help both its delivery managers and partners be more organized and efficient on the ground, the company says. RideOS, a platform created and led by former Uber, Google and Apple employees in the mapping and ride-hailing space, sees this acquisition as a chance to scale and stay at the forefront of defining the Instant Needs economy.
“Gopuff’s mission and global ambition to be the world’s go-to solution for immediate everyday needs is a natural extension of rideOS’ vision to build software that efficiently moves people and things throughout the world,” said Justin Ho, co-founder and CEO of rideOS, in a statement. “Given Gopuff’s exponential growth, we expect to significantly increase our headcount by the end of this year, expanding our presence in Silicon Valley, Pittsburgh, and Berlin.”
This article was updated to reflect the confirmed pricing of the acquisition.