Dive Brief:
- Gopuff has agreed to acquire rideOS, a startup that develops routing, dispatch and fleet optimization technology for the delivery and logistics industry for an undisclosed price, the e-commerce company announced in a Thursday press release.
- The combination is intended to help Gopuff cut delivery times and handle logistical challenges as it expands to more densely populated cities.
- Gopuff has been rapidly building its presence in the burgeoning high-speed delivery sector and is currently valued at nearly $9 billion.
Dive Insight:
Gopuff's pending acquisition of rideOS positions the e-commerce company to accelerate its efforts to play a leading role as the market for ultra-fast delivery of groceries and other products heats up.
RideOS specializes in scalable "mobility as a service" technology designed to help delivery companies monitor their fleets and overcome last-mile challenges, according to the San Francisco-based company's website. The company was founded and is run by veterans of high-profile companies involved in online mapping, including Uber, Google and Apple.
Those capabilities reflect Gopuff's ambitions to bring its 30-minute delivery service to urban areas, where deliveries can be complicated by crowded streets and other obstacles. The company, which was founded in 2013, currently operates over 400 facilities, including 275 micro-fulfillment centers.
"Gopuff’s mission and global ambition to be the world’s go-to solution for immediate everyday needs is a natural extension of the rideOS' vision to build software that efficiently moves people and things throughout the world," Justin Ho, co-founder and CEO of rideOS, said in a press release.
Gopuff is flush with cash following a March round of financing that brought the company $1.15 billion in new funding. The fundraising round, which more than doubled Gopuff's valuation, came on top of $380 million in new capital the company raised in October.
Gopuff's agreement to purchase rideOS comes on the heels of a deal it announced last month under which it bought Fancy, a U.K. startup that delivers groceries and daily essentials in under a half-hour. Also in May, Gopuff linked up with Uber Eats to create a white-label online store that will carry most of Gopuff’s product categories and use the convenience retailer’s dark store network and drivers to fulfill orders.
In November, Gopuff announced plans to pay $350 million for alcoholic beverage specialty retailer BevMo in a bid to boost sales of adult beverages and expand its presence on the West Coast.
