🕶e8: 2 Lazy 2 Get Drinks, Let Drinks Come 2 U!
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🥂 2 Lazy 2 Get Drinks, Let Drinks Come 2 U! History was made this week even though states held us in suspense as they counted their ballots extremely slowly. I know that got me drinking. Philadelphia-headquartered delivery player goPuff hopes this drinking trend carries on as they announced they have set terms to acquire BevMo! for $350 million. Although laws and restrictions around alcohol delivery are still pretty tight in most of the U.S., let’s see what goPuff might be boozin’ into!
The Facts Snacks
Founded in 2013 by co-founders and co-CEOs Rafael Ilishayev and Yakir Gola, goPuff currently operates more than 200 micro-fulfillment centers servicing over 500 U.S. cities. With micro-fulfillment centers in every market it serves, the company delivers thousands of products quickly for a flat $1.95 delivery charge. goPuff is open 24/7 in many markets and into the late night everywhere else to bring customers what they need, when they need it most
BevMo! is the leading alcoholic beverage specialty retailer in the western U.S., with 161 stores located throughout California, Arizona and Washington. BevMo! provides a uniquely friendly and welcoming environment for competitively priced alcoholic and non-alcoholic beverages
The coronavirus pandemic has led to conditions that have had a positive effect on demand for industry operators. Stay-at-home measures have resulted in many local government authorities to temporarily permit alcohol sales online. Consequently, IBISWorld estimates that revenue for the online beer, wine and liquor industry will increase by 11.2% in 2020 alone
Since the beginning of March, U.S. alcohol sales in “off-premise channels” — such as supermarkets and liquor stores — are up 22% compared with the same period last year, according to Nielsen data
What makes goPuff stand out?
Even though the company does not currently maintain any brick-and-mortar locations, it does retain full ownership of its micro-fulfillment center (Amazon-esque). The company also boasts a pretty speedy delivery for a low flat rate, making it a very compelling option for millennials and Gen Z customers (who make up 51% of the convenience store’s sales). Just take a look at the numbers: goPuff registered a ““nearly 90% increase in customers ordering at least once per week (vs. March 2019), and a 55% increase in order value”
An LA native, BevMo! has always been my booze shopping staple; going to college in Indiana, however, where the winters are miserable, goPuff was our go-to. Bevmo already created a desirable shopping experience with helpful staff l and a selection that’s hard to beat.
Meanwhile, I’m sure goPuff will further expand their food and beverage offerings. It shouldn’t be a problem as the company raised $380 million at an almost $4 billion valuation led by Accel and D1 Capital Partners, SoftBank Vision fund, and Luxor capital. All in all, I’m very excited to see how these two companies merge!
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What's up, my name is Evan Hiltunen! I am a recent finance grad from Indiana University and financial analyst @ Goldman Sachs. I have a strong passion for start-ups, finance, and technology, and I hope you find this newsletter informative!
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