Rafael Ilishayev and Yakir Gola know the exact moment that they had a business model that resonated. The pair of now 23-year-olds met on the first day of business school in 2011 at Philadelphia's Drexel University and quickly became friends. The following year they were living together with four other roommates, and Gola, the only one with a car, found himself always offering to run errands, especially since none of the on-demand platforms had what they wanted when it came to speed and price.

They decided they could do better, and the following year launched goPuff, an on-demand delivery service that seeks to make the convenience store obsolete. The founders set up the beta version of the app, bought a 1999 Plymouth Voyager, and no sooner had they affixed the goPuff logo to the vehicle did they get their first order -- a good month before they were officially ready to be up and running.

They officially launched on Dec. 25, 2013. During the first six months, Ilishayev and Gola worked alone for 17 to 18 hours a day, seven days a week in their Philadelphia warehouse taking orders and making deliveries in between classes.

Maintaining their sanity was a challenge, but the duo say that their friendship is more than intact -- it's stronger because of the experience. Today, they have a staff of 80 and a presence in 12 cities, including New York, Boston, Washington, D.C., Seattle and Chicago. And while 85 percent of goPuff's customers were 18 to 24 when the company began, that cohort now makes up only 50 percent, they said.

Going into 2017, they have plans to expand to a new location every three weeks, with their eyes on cities such as Columbus, Ohio, Nashville, Tenn., and Minneapolis. Gola says that a number of factors come into play when choosing a new location. They have to buy a new warehouse, hire contract drivers and develop relationships with suppliers in the area. If one piece isn’t there, the launch falls apart.

All those elements are necessary to make good on the company's promise that when you place an order with goPuff, which features a selection of more than 3,000 items, your delivery will be there in 30 minutes or less. If your order is $49 or more, the delivery is free. Otherwise, there is always a $1.95 flat fee. The pair's main goal is to get the delivery time down to 10 minutes. Ilishayev says that goPuff doesn't view companies such as Postmates, Instacart or DoorDash as goPuff's chief competition, because the company is dealing in different markets. While those businesses focus on grocery and restaurant delivery, goPuff's stock and trade are convenience store items. The concept of the convenience store is the company's chief competitor, Gola says

"Last year we had a state of emergency in Philadelphia, and we stayed open until we couldn't operate anymore. We were open even after Uber closed." Ilishayev says. "It doesn't matter how much money you make that day -- revenue isn't relevant, it's about being there for your customer. They know that everything else is unavailable, the convenience store is closed, but goPuff is your lifeline."
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Source : https://www.entrepreneur.com/article/285296?_e_pi_=7%2CPAGE_ID10%2C8245321584

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