US rapid grocery delivery platform Gopuff has entered the UK market by acquiring Fancy, a local start-up firm that currently operates in six cities across the country.
Founded in 2013, Gopuff currently operates more than 400 sites, including 250 micro-fulfilment centres, delivering to consumers in more than 650 cities across the US. The company was valued at almost $9bn in its most recent funding round, announced in March, up from $4bn in October.
Gopuff stated that its move into the UK was part of its plans to significantly invest in international markets, starting with Europe.
Fancy was established in January 2020 with hyper-local dark stores acting as micro-fulfilment centres that allow it to deliver a wide range of groceries and daily essentials in under 30 minutes. The service currently operates in Newcastle, Leeds, Liverpool, Manchester, Bristol, and Birmingham with upcoming launches in London, Sheffield, and Nottingham, among others.
“At Gopuff, we have been consistently focused on responsible growth, strategically establishing the physical infrastructure and footprint needed to bring Instant Needs to new geographies and customers,” said Daniel Folkman, Gopuff SVP of Business.
“Acquiring Fancy is an important first step as we accelerate expansion in the UK and Europe and quickly accelerate our investment in the international market.”
Gopuff said it plans to expand the UK-based team while working with Fancy to leverage Gopuff technology and expertise to further improve the customer experience.
Arnie Englander, CEO of Fancy, commented: “We have been inspired by Gopuff’s innovation and expertise in our industry and appreciated their insights in and support of our company as we’ve sought to expand to new markets in the UK.
“We are delighted to formally join forces with them through this transaction, which gives Fancy increased access to the Instant Needs category leader’s operational capabilities, deep bench of talented personnel, and infrastructure to fully execute our vision of delivering convenience across the UK.”
Led by established players such as Uber Eats and Deliveroo, the rapid grocery delivery market has grown significantly over the last year due to increased demand for such services during the pandemic. Fancy’s UK rivals include the likes of Weezy, Dija, Zapp and Getir. However, much of the competition has so far centred on London with the development of models that can operate profitably in smaller cities key to the future growth of the market.
NAM Implications:
- Best keep in mind names like Uber Eats, Deliveroo, Weezy, Dija, Zapp and Getir.
- All spelling out Rapid Delivery as a driver…
- …and now Gopuff with pedigree, funds and more…
- ..to add further pace…
- …with speed a key differentiator.
