If you order potato chips, toothpaste or over-the-counter medication via the Uber Eats app, the start-up Gopuff will fill and deliver them shortly. The two Softbank-backed companies announced a partnership on Tuesday.
Gopuff focuses on what it calls “everyday items,” things you would find in a supermarket.
″We have built a hyper-local logistics network of micro-fulfillment centers, “Daniel Folkman, senior vice president at Gopuff, told CNBC on Tuesday evening.” We own all of the inventory. We buy all inventory from manufacturers and distributors so we can fulfill these orders to customers in less than 30 minutes and 24 hours a day. “
The collaboration will begin in more than 95 US cities next month with a national expansion later this summer. Customers order through Uber Eats and that order is sent to one of Gopuff’s 250 micro-fulfillment centers.
“With this partnership, we can outperform the competition in using Gopuff’s network of micro-fulfillment centers to instantly meet consumer demand for thousands of products,” said Raj Beri, Uber’s director of groceries and new industry delivery. in a press release.
Customers who order meals from Uber Eats and convenience items at the same time will have them served by different drivers. However, both companies stated that the ordering process is seamless and customers pay through the Uber Eats app. Gopuff has a flat delivery fee of $ 1.95, but orders over $ 15 are free for Uber Eats Pass and Uber Pass subscribers.
While services like Instacart and Target’s own Shipt are seen as competitors, Gopuff focuses on convenience rather than full grocery service. Last week, the company said that toilet paper, Tylenol Extra Strength, White Claw Hard Seltzer, and Slim Jim Snacks were among the most popular items.
“We buy the inventory. We sell it for more than we buy it. This has made our business much more economically viable than a number of third-party delivery services because we actually make our money from the product.” Margin, not on the people who deliver it, “Folkman said.
Gopuff was founded in 2013 by two students in Philadelphia. The logistics start-up is now valued at $ 8.9 billion and recently acquired the BevMo spirits business chain of 160+ locations.
Uber has expanded its offering and capabilities in recent months through acquisitions of the Postmates delivery service, Drizly liquor store, and Cornershop grocery delivery service.