Uber announced that it partnered with delivery startup Gopuff to expand its delivery business. Gopuff, which acquired liquor store chain BevMo last year, will make its inventory of convenience and grocery items available to Uber as part of this new deal. The companies plan to roll out their new offering nationwide from June and later in the year to customers in 95 cities.
Gopuff takes care of the logistics and delivery of the items, with Uber lowering the transaction through its app. Founded in 2013, Gopuff operates in 650 cities in the US, with more than 250 “micro-fulfillment centers”.
The news follows months when Uber slowly morphed into a delivery company after suffering heavy financial losses from the pandemic. The company’s ride-hailing business tanked up in early 2020, and while it is still slowly recovering, whether it will return to its pre-pandemic heights is an open question. Uber said it was complete almost 30 percent fewer trips in 2020 compared to the previous year.
Delivery has been a bright spot for Uber, but while Uber Eats’ takeaway business is well established, grocery delivery still needs to be fully realized. Only 100 cities, including 20 major subways, are eligible to have their groceries delivered by Uber. The company has made a number of acquisitions in recent months, including Postmates, Cornershop and Drizlybecause it wants to expand its delivery options.
Still, Uber has its job to do as it tries to compete with major grocery delivery players, including Amazon and Instacart. Gopuff is an interesting choice for a partner. The company nearly tripled its sales to $ 340 million last year as the pandemic forced more people to turn to delivery startups for essential items. But like Uber, the company has struggled to attract and retain drivers The information.