Can Gopuff succeed with its current business model?
Could US-based rapid delivery big hitter Gopuff be the next WeWork?
Brittain Ladd, a former Amazon exec and supply chain consultant, certainly sees some similarities between the two.
In a LinkedIn post, reacting to an article by The Information claiming that Gopuff has shelved business initiatives, lost top executives, and lots of cash, he said: “I recently watched the informative and enjoyable series WeCrashed on Apple TV+ about the implosion of the company WeWork.”
“The centrepiece of the show was portraying how WeWork Co-founder Adam Neumann exhibited a dizzying array of bombast fuelled by tequila to con his way to raising billions from SoftBank and other investors.”
“It was especially interesting to watch how investors overlooked Neumann's eccentricities even as the company's burn rate exceed hundreds of millions of dollars per quarter.”
“Eventually, his antics and lack of common sense and business acumen resulted in his firing from the company.”
Ladd then moved on to the founders of Gopuff, Yakir Gola and Rafael llishayev.
“Gola and llishayev are confident individuals that also have a tendency to be brash and, to a degree, insulting. Like Neumann, they lack the required business acumen to grow the company they founded,” he wrote.
Ladd flagged that he has advised Gopuff and that it has sought his opinion on several different topics (NB: Gopuff deny this). In addition, he has written frequently about the firm. “I am a supporter of Gopuff, albeit a frustrated one.”
Improvements that can be made include supplementing the retail network with automated dark stores, and acquiring a rapid grocery delivery startup, with a preference for Flink or Jokr.
Quick commerce, instant needs, and rapid grocery delivery can succeed but not with their current business models, Ladd concluded.
Bryan Batista
Gopuff recently announced the appointment of Bryan Batista as Senior Vice President of International.
Batista previously served as CEO of Booking.com’s Rentalcars.com business.
Prior to that, he worked at Tesla Motors in both the US and Europe.
Based in the UK, he will report to Gola and IIishayev.
Gola said: “Bryan's deep expertise scaling companies around the world will be invaluable as we bring the Gopuff experience to new customers and markets worldwide.”
“We have a proven track record of strategic and successful expansion in the US and Europe. We are confident that with Bryan onboard, we are strongly positioned to continue to advance our global growth.”
Batista commented: “Instant commerce is one of the most innovative and influential sectors today.”
“Joining the pioneer of the category to help build the business in international markets is an opportunity like none other. We’ve seen how quickly adoption has risen in the UK, and I look forward to repeating that success elsewhere in Europe and beyond with this incredible team.”
Gopuff launched in the UK in November of last year, its first international market expansion outside the US following the acquisitions of Dija and Fancy in 2021.
Further locations are set to go live in 2022.
