US-based delivery company, goPuff that has its own micro-fulfillment network might be about to buy a United States-based delivery firm Fancy Delivery. The terms of this potential acquisition are still being worked out. Though the deal isn’t final yet, if confirmed, the agreement might arrive within the upcoming few weeks. If this deal goes through, it will signal the entry of goPuff into the UK market, using the strategy of acquiring a similar local establishment instead of starting from scratch.
More on the potential goPuff-Fancy deal
The two delivery companies are vertically integrated, have their own fleet of drivers on contractual basis and operate their own micro fulfillment centers which are essentially ‘dark stores’ used for ultra-local deliveries and online ordering. If the agreement goes through, Fancy is supposed to keep operating under its own name. Meanwhile, goPuff will invest in its growth and take care of actions such as hiring and operating new fulfillment centers. Strategically speaking, the potential acquisition of Fancy by goPuff seems like a good fit.
Fancy Delivery: A UK-based delivery firm
Launched in 2020, Fancy Delivery (which operates on a model similar to goPuff) offers delivery services for items such as alcohol, baby food and over-the-counter medicine within a short time. At present, Fancy operates in 4 UK cities and is a ‘graduate of the Silicon Valley accelerator Y Combination’.
Recently, the delivery startup goPuff was valued at $3.9 billion and operates in about 500 cities in the United States. Its backers include SoftBank Vision Fund, Accel, Luxor Capital and D1 Capital Partners.
Notably, goPuff recently acquired BevMo, a West Coast-based specialty beverage retailer. The acquisition deal went through for about $350 million. The deal was touted as a strong one all because of the loyal customer base, deep infrastructure and iconic brand of BevMo that would fit in perfectly in the ecosystem of goPuff. With BevMo’ acquisition, that operates in more than 100 stores in 3 US states, goPuff got more opportunities for micro-fulfillment centers and now plans on working on reaching customers in a “30 minutes-or-less” time frame with its rapidly growing inventory.
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