- Uber Eats is launching a Gopuff-powered “everyday essentials” online store across the country 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.
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, which launched a grocery delivery service last summer that 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 just passengers and food. at the restaurant.
Gopuff, meanwhile, has the infrastructure to deliver to more than 650 U.S. cities and wants to increase the business that goes 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. It also operates over 160 BevMo sites that it 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 shopping and new verticals delivery at Uber, said in an interview last year that the company was targeting ‘top-ups’ as well as grocery shopping and was aiming to do of 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 announced the addition of a feature that allows rideshare customers to order and collect meals and groceries on the way 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 is moving fast thanks to the $ 1.15 billion funding it 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 operations at Gopuff.
Gary Hawkins, Founder and CEO of the Center for Advancing Retail & Technology, believes many other digital-native food retail companies will team up in the months and years to come, challenging conventional grocers.
“Gopuff, by default, is digitally engaged with each of its customers. Uber the same … eall 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 a massive customer base, but the vast majority of shoppers are not heavily digital. This is the danger and the opportunity.“