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US-based rapid delivery start-up Gopuff announced it was cutting the jobs of about 1,500 employees — from both its corporate and logistics staff — and closing 76 of its warehouses.

Gopuff offers customers access to a variety of around 4,000 products within 30-40 minutes. The company was recently valued at $15bn.

Before the downtown market, the company was rapidly expanding its reach as it tried to compete in highly-competitive sectors with Amazon, DoorDash and Instacart.

These job losses represent approximately 10% of the company’s workforce and 12% of its delivery network. However, the company stated in a letter to investors that it will continue expanding services at some locations.

“The instant commerce industry that Gopuff created is at an inflection point,” wrote Rafael Ilishayev and Yakir Gola, the company’s co-founders and co-chief executives.

“As we prepare for what could be a much more significant macroeconomic downturn than we are experiencing currently, the smaller instant commerce players that never achieved scale are consolidating and liquidating.”

Seeking to distance itself from recent struggles seen among smaller delivery players such as Buyk and Jokr, Gopuff said it has seen 76 per cent year-on-year sales growth for “the core business”. It claimed to have Ebitda profitability in “mature” markets — locations where it has been operating for around 12-15 months.

It said one area of focus in future would be the UK, where it has experienced “impressive traction”.

Gopuff bought Fancy and Dija (two small delivery start-ups in Britain) in 2021.

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