Gopuff plans to end its operations in Spain to slim down its business and move closer to profitability, according to a person familiar with the matter.
(Bloomberg) — Gopuff plans to end its operations in Spain to slim down its business and move closer to profitability, according to a person familiar with the matter.
While the company is leaving Spain, the UK will become a bigger priority and is one of Gopuff’s fastest growing markets, with revenue increasing at a 30% compound monthly rate, the person said, asking not to be identified because the plans haven’t been formally announced.
The retrenchment is a reversal of the SoftBank Group Corp.-backed company’s expansion plans a year ago, when it bought a pair of startups and said it planned to expand into every country in Europe. The delivery startup has also cut back its global workforce and closed dozens of warehouses this year, reining in spending amid a shift from pandemic-fueled growth toward generating cash.
Read more: Gopuff Cuts 10% of Staff, Closes Warehouses to Preserve Cash
In July, Gopuff slashed 10% of its workforce and said it would be “re-evaluating” its presence in France and Spain to double down on the UK. A representative for Gopuff declined to comment.
Rival Deliveroo Plc has also discontinued operations in Spain, saying last year that the level of investment required to maintain a top competitive position in the market was too great.
Gopuff’s Spanish operations came as part of its acquisition last year of UK competitor Dija and include about 180 employees and five micro-fulfillment centers in Madrid, which accounted for about 1% of the company’s global orders in the first half, the person said.
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