According to Financial Times News, Chelsea Football Club co-owner Todd Boehly is leading a $250 million investment in rapid delivery startup Gopuff through his Eldridge Industries firm alongside Valor Equity Partners. The deal values Gopuff at just $8.5 billion, nearly half its $15 billion pandemic-era valuation from 2021. Founded in 2013, the company pioneered 15-minute delivery of consumer goods like ice cream and diapers but faced industry-wide challenges as competitors merged or exited markets. Gopuff responded with layoffs and a business model pivot that now includes fresh produce, medications, and Starbucks partnerships. The funding round includes both new and existing investors like Baillie Gifford and Robinhood, with former BlackRock executive Matt McBrady joining as CFO.
The great delivery reckoning
Here’s the thing about those pandemic darlings – they were built for a world that doesn’t exist anymore. Remember when we all thought we needed ice cream delivered in 15 minutes? Gopuff rode that wave to a $15 billion valuation when money was basically free and everyone was stuck at home. But now? The party’s over. Interest rates shot up, people started going outside again, and investors suddenly remembered that businesses need to actually make money.
What’s fascinating is how many of Gopuff’s competitors just evaporated. Gorillas and Getir merged and bailed on the US market entirely. DoorDash had to scoop up Deliveroo for nearly $3 billion just to survive. It’s like that scene in a disaster movie where everyone’s running from the tidal wave – Gopuff is one of the few still standing, but they’ve taken some serious damage.
The pivot playbook
So how do you survive when your business model goes from investor darling to cautionary tale? Gopuff’s playing the classic turnaround playbook. They’re cutting costs (layoffs), expanding what they sell (fresh food, meds), and chasing higher-margin partnerships (Starbucks). They’re even taking government food assistance payments now – smart move to tap into a reliable revenue stream.
Co-CEO Yakir Gola admits they saw the writing on the wall back in late 2021 and told the company they needed to focus on profitability. “We realized that if we can be the best in the world at instant delivery, we’re going to win the long game,” he says. That’s the kind of talk investors want to hear after watching billions evaporate.
Boehly’s bet
Now why would Todd Boehly – the guy who owns Chelsea FC, has stakes in the Dodgers and Lakers, and generally knows how to spot value – jump into this mess? He’s betting that being “the last one standing” actually means something. When all your competitors collapse, you get their customers by default. Boehly says Gopuff was “in the unique position to transition when the markets required a focus on profitability rather than a focus on growth.”
But let’s be real – $8.5 billion is still a massive valuation for a company that’s basically in turnaround mode. That’s the thing about these down rounds – they look like haircuts until you realize the company was probably overvalued to begin with. Still, having someone like Boehly leading the round gives them credibility and probably better terms than they would have gotten otherwise.
What’s next?
Gola says they’re “back in offence mode” with strong growth and unit economics. The question is whether instant delivery is actually a sustainable business or just a nice-to-have service that burns cash. They’re talking about expanding again after pulling back from European markets like France, but cautiously this time.
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Basically, Gopuff gets to live another day, but they’re playing a completely different game than they were in 2021. The question is whether being the last instant delivery company standing is actually worth $8.5 billion – or if this is just the calm before another storm.
