The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: GoPuff's Rafael Ilishayev on How GoPuff Has Been EBITDA Profitable From Day 1; The Unit Economics Behind GoPuff, With Intense Competition What Happens To The Food Delivery Space & What It Takes To Launch, Grow and Maintain New Markets
5 snips
Jun 14, 2021 
Rafael Ilishayev, Co-founder and Co-CEO of GoPuff, shares insights about transforming a college delivery service into a nationwide leader with robust profitability from day one. He discusses the strategic importance of unit economics and why he opted for bootstrapping before seeking funding. Ilishayev also delves into scaling challenges, identifying attractive new markets, and the competitive dynamics of the food delivery space. His emphasis on team-oriented hiring underscores the cultural fit necessary for success in high-growth environments.
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GoPuff's Origin
- GoPuff's initial concept stemmed from the founders' college experience where their friend Kira acted as their delivery service.
- Realizing the inconvenience of stores and existing delivery apps, they decided to create a vertically integrated model.
Early Profitability
- Bootstrapping for the first two and a half years allowed GoPuff to achieve profitability from day one due to superior gross margins.
- This vertical integration enabled higher margins than traditional convenience stores, which struggle with low margins.
Expansion Strategy
- GoPuff's early expansion strategy was simple: go where the customers are, particularly where demand exceeds availability.
- This customer-centric approach fueled their initial growth and helped them identify high-potential markets.
