Dive Brief:
- GoPuff, an on-demand convenience store delivery service, has expanded its offerings to Atlanta, according to the Shelby Report.The startup currently warehouses more than 3,000 products, including snacks, ice cream, pet supplies, electronics and more.
- GoPuff delivers products in 30 minutes or fewer between the hours of noon and 4:30 a.m. The service also offers on-demand alcohol delivery in select markets with the goBooze and goBeer app categories. GoPuff has a $1.95 delivery charge, which is waived for orders over $49.
- GoPuff also is available in Austin, Texas; Boston, MA; Chicago, IL; Columbus, Ohio; Denver, CO; Manayunk, Philadelphia, Pittsburgh and State College, PA; New York, NY; Phoenix and Tucson, AZ; Portland, OR; Seattle, WA; and Washington, D.C.
Dive Insight:
Unlike other grocery-centered delivery services, GoPuff owns warehouses in every city where it has delivery operations.This ensures the company has inventory at the ready, and allows it to control the speed of its product delivery. GoPuff users can choose from an array of chips, sports drinks, ice cream, booze, among other products. Customers also can use the app to buy a new phone charger or a refill on office supplies without running to the store.
This model caters to millennials and college students, consumer populations that prioritize convenience over almost every other variable — sometimes even price. It also fills a need that competitor services like Amazon Fresh and Peapod can't deliver on — neither service boast a 30-minute delivery guarantee, and they don't offer products beyond the grocery category.
Services such as GoPuff are disrupting the traditional supermarket space as well. Grocers are racing to implement tech that speeds up the checkout process, and many brick-and-mortar stores are exploring home delivery, click-and-collect and curbside pickups options to protect their market share.
Still, grocers may not be acting fast enough. According to PG's 84th Annual Report of the Grocery Industry, 77% of retailers still don't offer click-and-collect programs. While cheaper and less complicated to operate than home delivery, click-and-collect is still expensive, and could increase costs and hurt grocers' bottom lines during the development process. GoPuff could be on to something if it can withstand other competitors while at the same time getting enough customers and keeping expenses down — something that has befuddled companies like dotcom darling Kozmo.com that promised free one-hour delivery of videos, games, books, food and other items.