Uber and Gopuff team up on “everyday essentials” online store


Dive brief:

  • Uber Eats is launching a nationwide Gopuff-powered “Everyday Essentials” online store this summer, according to an ad enterprises.
  • The white-label store will carry most of Gopuff’s product categories, with the convenience retailer’s dark store network and drivers filling the orders. The collaboration will launch in more than 95 cities in June and extend nationwide over the summer.
  • The deal is a first for both companies – the first time Uber has partnered with a vertically integrated delivery company and Gopuff’s first white-label offering for another company – and underscores the growing focus on convenient delivery.

Dive overview:

Uber and Gopuff are joining forces to expand their reach to consumers and challenge established online competitors like Instacart.

Businesses have complementary needs and capabilities. Uber, who launched a grocery delivery service This past summer, which is now available in 20 major metropolitan areas across the United States, is looking to increase the number of places it can carry more than passengers and restaurant food.

Gopuff, meanwhile, has the infrastructure to deliver to more than 650 U.S. cities and wants to increase the volume of business going through its more than 250 dark little stores. In the announcement, Gopuff said it increased its number of “micro-fulfillment spaces” by 80% last year. This too operates over 160 BevMo sites he acquired last year.

The new Uber Eats offering will include snacks, pantry items, over-the-counter medications, alcohol, cleaning supplies and other essentials. Uber Pass and Eats Pass members will receive free shipping on orders over $ 15. Gopuff says orders typically take 20 to 40 minutes to deliver.

The online store highlights the growing power of third-party applications. Uber has traditionally connected to restaurant and grocery store online platforms as a service provider, while Instacart has done the same and also offers white label services to power retailers’ online stores. But the essentials store is another delivery app case offering its own branded online storefront – the other being DoorDash’s DashMart, which launched last summer and is now available in many cities.

Raj Beri, Head of Grocery and Delivery of New Verticals at Uber, said in an interview last year that the company is targeting “refillable” shopping as well as grocery shopping; and that it aims to make its Uber app a one-stop-shop for the delivery of all kinds of goods and services. In Tuesday’s announcement, he noted that searches for groceries and convenience products have increased 40% year-to-date.

Last week, Uber said he was adding a feature that allows carpooling customers to order and collect meals and groceries en route to their destination. In February, Uber accepted buy alcohol delivery startup Drizly as part of a $ 1.1 billion deal, noting at the time that he planned to eventually integrate Drizly into the Uber Eats app.

Gopuff quickly flakes off the back of $ 1.15 billion in funding he received earlier this year. This includes the addition of seasoned e-commerce veterans to its ranks, including Tim Collins, former vice president of global logistics at Amazon, who is now Senior Vice President of Gopuff Operations.

Gary Hawkins, Founder and CEO of the Center for Advancing Retail & Technology, believes many other digital-native food retail companies will join in the months and years to come, challenging conventional grocers.

“Gopuff, by default, is digitally engaged with each of its customers. Uber the same … each of these companies increases value by leveraging their digital networks, connecting them to other digital networks and increasing their revenues, ”Hawkins wrote in an email. “Traditional retailers have massive following, but the vast majority of shoppers aren’t heavily engaged digitally. This is the danger and the opportunity. “

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