If you order chips, toothpaste, or over-the-counter medications through the Uber Eats app, they will soon be processed and delivered by start-up Gopuff. The two companies backed by Softbank announced a partnership on Tuesday.
Gopuff, ranked No. 22 on last year’s CNBC Disruptor 50 list, focuses on what he calls “everyday essentials,” items you’ll find at a convenience store.
??We’ve built a hyperlocal logistics network of micro-fulfillment centers, ”Daniel Folkman, senior vice president of Gopuff, told CNBC on Tuesday night,“ We own all the inventory. We buy all of this inventory from manufacturers and distributors so that we can fulfill customer orders in less than 30 minutes, 24 hours a day. ”
The collaboration will launch in more than 95 U.S. cities next month with a nationwide expansion later this summer. Customers will order through Uber Eats, and that order will be sent to one of Gopuff’s 250 micro-fulfillment centers.
“With this partnership, we are able to stay ahead of the competition by using Gopuff’s network of micro-fulfillment centers to instantly meet consumer demand for thousands of products,” said Raj Beri, Grocery Manager. and delivery of new verticals to Uber, in a statement.
Customers who order meals on Uber Eats and cooked meals at the same time will have them processed by different drivers. However, both companies said the ordering process will be seamless, with customers paying through the Uber Eats app. Gopuff has a flat shipping fee of $ 1.95, but orders over $ 15 will be free for Uber Eats Pass and Uber Pass subscribers.
While services like Target-owned Instacart and Shipt are seen as competitors, Gopuff said it is focusing on convenience, not full grocery service. Last week, the company said toilet paper, Tylenol Extra Strength, White Claw hard salt and Slim Jim snacks were among the most popular items purchased.
“We buy inventory. We sell it for more than we buy, which has made the unit economy of our business much stronger than a number of third-party delivery services, because we actually earn our money on the product margin, not on the people who deliver it, ”Folkman said.
Gopuff was founded in 2013 by two students from Philadelphia. The logistics start-up is now valued at $ 8.9 billion and recently acquired the BevMo liquor store chain with its more than 160 locations.
Uber has expanded its offerings and capabilities in recent months with the acquisition of Postmates delivery service, Drizly liquor marketplace and Cornershop grocery delivery service.