Gopuff Breaks Into Wellness Industry With In-House Line Of Health Products – Forbes

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Gopuff cofounder Rafael Ilishayev (left) and Forbes editor Steve Bertoni (right) onstage at the Under 30 Summit in Detroit.
On-demand delivery service Gopuff is rolling out its own line of health and wellness products, cofounder Rafael Ilishayev announced onstage at the Forbes Under 30 Summit in Detroit.
Gopuff got big—$15 billion big, per its latest valuation—providing on-demand deliveries for more than 4,000 products, including cleaning and home products, medicine, pet care, office supplies, beauty and wellness products, baby products, food, drinks and alcohol. Founded in 2013 by Forbes Under 30 alumni Ilishayev and Yakir Gola, it currently serves more than a thousand cities and employs more than 7,000 people.
Now, customers can order products such as pain, allergy, cold and flu relief, sleep aid products and at-home diagnostic kits through the company’s in-house label, Goodnow. More products including electrolyte drinks, bandages and antihistamines will roll out in coming months.
This isn’t their first rodeo: Gopuff earlier this year launched its first private label, Basically, which includes bottled water, snacks and home essentials like paper towels. Basically has consistently been among Gopuff’s top 10 best-selling brands, the company said. Gopuff has also launched an in-house brand of freshly made pizzas, as well as a line of plant-based snacks in collaboration with NBA star Chris Paul.
The founders explained at the Summit how their audience helps inform their growth plans. When thousands of users began searching for pizza and chicken wings, Ilishayev built kitchens in Gopuff’s warehouses. With knowledge of the average Gopuff customer’s palette—which leans spicy, as Ilishayev mentioned—Gopuff is able to provide users with exactly what they’re asking for.
“We use a lot of search data, so when someone searches for an item and it doesn’t yield a proper result, we’ll add it to the queue of items that we want to introduce,” Ilashayev said. “It always starts with our own consumers telling us what they want.”
With access to this immediate data, the founders said the decision to add wellness to their repertoire was a no-brainer. Their sales in the health and wellness category increased 130% in 2022 after rising 200% the year prior, Gopuff said. Heightened by the pandemic, the not only desire, but necessity of instant home delivery has transcended the culture of Hot Cheetos and Advil—anything from a Covid-19 diagnostic test to electrolytes for those rougher morning-afters are available in-house. The company currently holds 73% of the Instant Needs category in the U.S., according to Yipit data.
It hasn’t always been smooth sailing for Gopuff– earlier this year, the company announced that it was laying off 10% of its workforce and closed 76 warehouses in the U.S., according to a letter to investors covered by CNBC. This comes after it cut 3% of its employees and pushed an IPO to the backburner in March.
Ilashayev at the Summit noted that to stay alive in the current market, Gopuff is focused exclusively on profitability. “I think a lot of people are out of touch with the reality of what’s happening,” said Ilashayev. “My opinion is it will get a whole lot worse before it gets better.”
“A lot of people are still focused on growing at all costs; we’re focused on running a profitable business because that’s the one key in business, right?”


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