Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending PushRead More

Image: Gopuff
Exclusive
Startups E-commerce

Inside Gopuff’s Ambitious and Costly Bid to Dominate European Instant Delivery

Photo: Image: Gopuff

Executives at Gopuff, a U.S. instant-delivery company that has planned to go public this year, recently told investors that its foray into Europe, which began last year, has topped expectations: The business is on pace to generate $100 million in annual revenue there, or about 5% of its overall revenue currently, and is growing three times faster than it had projected, according to two people with direct knowledge of the discussions.

But Gopuff has a mountain to climb: In London, one of its earliest overseas cities, average order volumes remain well below what it needs to break even there, according to one current and one former senior employee. That may not be surprising, given its relatively recent launch in the city amid intense competition from local incumbents.

The region’s high labor costs are also posing challenges: The company recently discussed paying delivery workers in Europe and the U.K. based on delivery trips they make or hours when they are actively delivering goods—like it does in the U.S.—instead of what it currently does: pay them for regular shifts, even when they aren’t actively delivering. The idea ruffled feathers internally and was ultimately put on ice because it could upset workers as well as regulators, according to the current and former employees.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing Media/Telecom
TikTok’s Ad Business Is Giving Us Déjà Vu
Shouzi Chew, CEO of TikTok, in February. Photo by Bloomberg
First, some news about us! I am thrilled to share that we’ve hired Karl Wells—who has been running the subscription business at Dow Jones and The Wall Street Journal—as our first chief commercial officer. Joe Pompeo broke the news for Vanity Fair. I’m really proud of how we’ve driven the conversation in tech journalism these past eight and a half years, and I feel really lucky to be...
Latest Briefs
 
Cloud Management Firm Nutanix Lays Off 4% of Staff
Activist Investor Builds 7% Stake in New York Times, Urges Subscription Bundle Push
BlackRock Launches Bitcoin Trust for Big Clients
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Illustration by Jesus Escudero.
Exclusive Venture Capital Startups
Debt Is Back for Startups Shut Out of IPO Market
Tech startups that had been eager to go public this year have been forced to put those plans on ice amid the market meltdown.
Art by Clark Miller
The Big Read
‘He’s Making Up a World He Wants to Attack’: How Vivek Ramaswamy Became a Right-Wing Culture Warrior
Riley Moore had never met the man seated next to him. The state treasurer of West Virginia, Moore had come to a conservative retreat in the state’s storied Greenbrier resort in May 2021 to talk about a letter he and 14 other Republican state treasurers had just written to the Biden administration’s climate envoy, John Kerry.
Viral Patel, global head of technology investing for Blackstone Credit. Art by Clark Miller.
Exclusive Venture Capital Startups
Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending Push
Private equity giant Blackstone is gearing up to make its first major push into lending to startups and technology companies—joining a corner of the debt market that’s quickly heating up.
Photo by Alaska Air Group.
Facebook
For Meta’s Next CFO Susan Li, Metaverse Dreams Mean Real-World Challenges
When Meta Platforms reported its first-ever quarterly revenue decline last month, the Facebook parent company also made a key promotion with little fanfare: 36-year-old finance executive Susan Li would become chief financial officer in the fall, replacing longtime CFO Dave Wehner, who held the role for eight years and would transition to a strategy role.
Enterprise Power List Venture Capital Enterprise
Introducing The Information’s Enterprise Tech Power List
The biggest battle in tech is happening where most consumers can’t see it: the cloud. And a new cast of executives and investors are increasingly calling the shots—making decisions about the future of the battle with trillions of dollars at stake.
Art by Clark Miller.
Venture Capital Startups
Venture Capital’s Limited Partners Warn of Fundraising Slowdown
The era of easy money could be over for venture capital firms. Although VC fundraising has so far matched last year’s brisk pace, limited partners—the people and institutions that invest in VC funds—say a slowdown is afoot.