Grubhub and Gopuff are partnering to provide fast delivery of grocery items, alcohol and essential items. The new partnership will see the Chicago-based food delivery platform tap into Gopuff's warehouses to deliver a wider selection of convenience items to its customers, while also opening up a new channel for Gopuff to reach more customers.
The companies are piloting the partnership this week in New York City, Los Angeles, Chicago, Boston, Philadelphia and Austin. In the coming weeks, hundreds of Gopuff locations across the country will be available on the Grubhub Marketplace. Gopuff orders placed on Grubhub's app will be fulfilled by Gopuff's logistics.
"Expanding Gopuff's platform allows us to meet consumers' immediate needs anywhere they shop," said Daniel Folkman, the senior vice president of business at Gopuff, in a press release. "By combining our broad assortment, logistics network and infrastructure with the virtual storefronts of Grubhub, we can create more seamless one-stop shopping experiences for Gopuff's unparalleled one-stop shopping experience."
The partnership will bring thousands of products available for delivery on Grubhub from more than 500 Gopuff locations, including virtual concepts. The companies note that alcohol will be available in select cities, as well. Gopuff says it will launch virtual concepts on Grubhub, including its pizza brand, The Mean Tomato, Gopuff Liquor and virtual menus for brands including Unilever.
At launch, Gopuff locations will also be included in Grubhub+, which is the company's membership program that gives customers $0 delivery fees on eligible orders and other perks.
"Diners now have more options when it comes to ordering fresh food, grocery items, snacks, and alcohol - all from the convenience of the Grubhub app," said Ariella Kurshan, the senior vice president of growth at Grubhub, in the press release. "These expanded offerings complement Grubhub's vast restaurant network and keep diners engaged across the Grubhub Marketplace."
Grubhub's partnership with Gopuff will help it compete with other delivery platforms, including DoorDash, which offers convenience items through its DashMart service.
The partnership comes as Gopuff, which was being valued at $15 billion as recently as 2020, and had been rumored to be prepping for an IPO at the start of this year, is planning to pull out of Spain to focus on more lucrative markets, like the U.K. As for Grubhub, the partnership comes as its parent company, Just Eat Takeaway, said in May that it was exploring divestment options for Grubhub, which it acquired for $7.3 billion in June 2021.