NYC delivery wars, Cruise gives driverless rides in SF + Gopuff Co-CEO Rafael Ilishayev | E1378

Feb 4, 2022

Rafael Ilishayev, Co-founder and Co-CEO of Gopuff, shares insights from the rapid delivery sector, revealing how they achieve 20-minute delivery through micro-fulfillment centers. He discusses their strategic acquisitions of BevMo and Liquor Barn to enhance alcohol delivery without building from scratch. Rafael delves into the competitive landscape, highlighting challenges and the need for innovative partnerships, like those with influencers such as Mr. Beast. He also introduces Gopuff's new private label, 'Basically,' and their hot food service, 'Gopuff Kitchens.'

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INSIGHT

Joker's NYC Exit

Joker, an instant delivery startup, is selling its NYC business due to heavy losses and competition.
GoPuff's success is likely a contributing factor to Joker's struggles.

INSIGHT

GoPuff's Dominance

GoPuff's well-capitalized position and aggressive tactics, like discounting, are making it hard for competitors to survive.
This aggressive competition could be seen as anti-competitive, but discounting is generally allowed.

ANECDOTE

Strategic Retreat

Uber's strategy was to aim for gold in every market, selling off units that didn't achieve a top position, like in China and Russia.
Joker seems to be following a similar strategy, retreating from NYC to focus on its stronger Latin American market.

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First Jason and Molly discuss reports from "The Information" that Jokr is looking to sell its NYC delivery business due to heightened competition (1:51). Next, they cover how Cruise is opening up its driverless vehicles to give rides in San Francisco (11:09).

Then, Gopuff Co-founder and Co-CEO Rafael Ilishayev joins to discuss his rapid delivery business (19:12).

Almost a decade ago, Raf and his co-founder Yakir Gola started one of the fastest-growing commerce businesses while in college. Most recently they raised $1B at a reported $15B valuation in July 2021. In this episode, you will learn:

1. The rationale behind operating a vertically-integrated model

2. How they operate hundreds of micro-fulfillment centers & manage deliveries in 20 minutes

3. Why they acquired BevMo and Liquor Barn to accelerate their alcohol delivery business instead of building it themselves

4. The challenges he sees going forward to operate the business well

5. Why Gopuff launched their own private label called “Basically” and hot food offering called "Gopuff Kitchens"

6. How influencers like Mr. Beast are choosing Gopuff as a key platform to distribute products

Check out Gopuff: https://www.gopuff.com

FOLLOW Raf: https://twitter.com/Rafaelilishayev
FOLLOW Jason: https://linktr.ee/calacanis
FOLLOW Molly: https://twitter.com/mollywood

(00:00) Molly and Jason intro the show
(01:51) The Information reported that Jokr is shopping it's NYC delivery business
(09:57) Masterworks - Skip the waitlist to invest in art using promo code TWIST at https://Masterworks.io
(11:09) We Live in the Future - Cruise Robotaxis open up for SF public in limited quantities
(17:56) Linode - Apply to their Rise program for founder-led, early-stage startups and get 3 years of discounts at https://linode.com/twist.
(19:12) Interview Gopuff Co-CEO Rafael Ilishayev
(31:41) Ourcrowd - Check out the deal of the week at https://ourcrowd.com/twist
(32:54) Gopuff's focus on the SKUs that matter for their customers
(35:10) Can Gopuff operate profitably?
(38:41) Managing Gopuff deliveries
(43:34) Gopuff's pace of expansion
(49:45) Will Gopuff enter the cannabis market?
(50:51) What are Gopuff's potential headwinds?
(53:27) Why Mr. Beast picked Gopuff as a distribution channel
(59:24) How Gopuff picked up talent from the defunct Brandless team to launch their house brand, Basically
(61:59) Gopuff's sustainability measures