Delivery company Gopuff, which works its own microfulfillment network to deliver convenience store products in an Uber-esque manner, might be about to acquire the U.K.-based company Fancy Delivery, a report says.
The terms of the agreement are still being worked out, according to the report, but the deal isn’t final yet. An agreement might come within the next few weeks.
Fancy was launched late last year, and has a similar model to Gopuff, offering delivery services for items like over-the-counter medicine, baby food and alcohol within a short time frame. Some, according to the report, have called it a “mini Gopuff.”
According to the report, the two companies are essentially vertically integrated, with both contracting their own fleets of drivers and operating their own microfulfillment centers, which are “dark stores” used for online ordering and ultra-local delivery.
If the deal goes through, it could signal Gopuff’s entry into the U.K. market, using the strategy of purchasing a similar local player instead of starting from scratch, the report says.
Reports say Fancy will keep operating under its own brand if the deal happens. Meanwhile, Gopuff intends to invest in its growth, with actions like hiring and operating new fulfillment centers.
Recently Gopuff was valued at $3.9 billion, the report writes, and operates in 500 U.S. cities currently.
Notably, Gopuff is also no stranger to acquisitions, having recently bought West Coast-based BevMo, a specialty beverage retailer. The deal went through for $350 million. The acquisition was touted as a strong one because of BevMo’s loyal customer base and “deep infrastructure” and “iconic brand” that could become a good fit with Gopuff’s.
With the acquisition of BevMo, which operates in over 100 stores in three states, Gopuff gained more opportunities for microfulfillment centers, and will now work on reaching customers in its 30 minutes-or-less time frame with its continually growing inventory.