Gopuff CEO defends his company’s business model

Gopuff co-founder and co-CEO Rafael Ilishayev has defended his company’s business model on LinkedIn as the sector draws criticism.

“Since Yakir Gola and I started Gopuff nearly nine years ago, we’ve come across scepticism on the space and business model – and I understand why,” Ilishayev said.

“So here is my point of view on the industry and why we believe in it as much today as we did nine years ago.

“Often, we have investors, analysts and the media asking us: why do people need ice cream in 15 minutes? Truth is – they don’t.

“Nobody needs ice cream in 15 minutes. Our business is far beyond that – it’s about serving the changing trend in commerce.”

Quick commerce firms experienced exponential growth over the course of the pandemic and its subsequent lockdowns as supermarkets struggled with with demand.

However since the easing of pandemic restrictions, growth in the quick commerce sector has dried up, leading to a number of rapid delivery grocers folding their business.

Gopuff had reportedly shelved new business initiatives, lost top executives and lots of cash, according to a recent article by The Information.

Ilishayev responded to the claims by saying: “Since Yakir Gola and I started Gopuff nearly nine years ago, we’ve come across scepticism on the space and business model – and I understand why. So here is my point of view on the industry and why we believe in it as much today as we did nine years ago.”

“Often, we have investors, analysts and the media asking us: why do people need ice cream in 15 minutes? Truth is – they don’t. Nobody needs ice cream in 15 minutes. Our business is far beyond that – it’s about serving the changing trend in commerce.”

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