Photo credit: goPuff

On-demand delivery startup GoPuff has announced that it’s reached a deal to acquire liquor chain BevMo! for $350 million. With BevMo!, GoPuff is getting a leading alcoholic beverage retailer with a footprint of 161 stores across the states of California, Arizona, and Washington. The delivery company plans to tap into BevMo!’s network to enable quick deliveries of alcoholic beverages to its customers.

BevMo! is a privately-held alcoholic beverage chain that was originally founded as ‘Beverages & More!’ in 1994. The company had its start in the state of California and has maintained a sizeable footprint there since its inception. 

BevMo! is one of the largest liquor retailers in the US and has now been sold to a delivery startup that was founded seven years ago. GoPuff is one of the major on-demand delivery services in the US, with a network of over 200 micro-fulfillment centers across 500 US cities. The company charges a flat $1.95 delivery fee for on-demand access to items that are usually found in convenience stores.

GoPuff already delivers alcohol on-demand in some markets and apparently sees BevMo! as a way to boost its business in that area. It seems that the alcohol business generates healthy profit margins compared to other segments and, as a result, is seeing GoPuff doubling down on it.

GoPuff’s $350 million all-cash acquisition of BevMo! comes just roughly a month after the company raised $380 million in new funding that placed its valuation of $3.9 billion. 

GoPuff is backed by a host of technology investors include well-known names such as Accel, D1 Capital Partners, and the SoftBank Vision Fund.

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