Dive Brief:
- Gopuff announced Wednesday the launch of its new fresh grocery assortment powered by Misfits Market.
- The tie-up allows for quick delivery of more than 300 items, including fresh produce, dairy, meats, bread and more.
- The partnership comes at a pivotal time for both companies, as Gopuff looks to make a comeback amidst the downfall of rapid delivery and Misfits Market begins providing e-commerce fulfillment services.
Dive Insight:
After years of offering mostly snacks, beverages, over-the-counter medications and other instant needs items, Gopuff is expanding its assortment of fresh groceries to boost baskets.
Misfits Market will deliver grocery products to Gopuff’s micro-fulfillment centers almost daily, according to the announcement, leaving the last-mile service to Gopuff, which says it offers delivery in as little as 15 minutes.
During pilot testing, which launched in Chicago in December and expanded to Philadelphia and New York City in February, one-quarter of all Gopuff orders contained fresh grocery items. The e-commerce company also noted that offering grocery items has led to 20% bigger baskets and more than 50% increases in produce, dairy, prepared foods and meat sales.
Misfits Market founder and CEO Abhi Ramesh said in a statement that the new partnership with Gopuff builds on the grocer’s efforts to eradicate food waste.
Grocery items aside, Gopuff already delivers around 5,000 everyday essentials to its users. The company’s subscription members, or FAM members, are eligible to receive 50% off fresh groceries, including strawberries for less than $4 or bananas for 25 cents each.
This announcement comes just a few days after the e-commerce company debuted Powered by Gopuff, a logistics and technology platform that allows brands to offer affordable, 15-minute delivery from their owned and operated online stores. Gopuff also launched a 20-minute-or-less delivery option earlier this month for its FAM members in an effort to build its subscription program during a time when ultrafast delivery has tapered off.
Misfits Markets is also broadening its services, announcing in early February that it started supplying e-commerce fulfillment services to companies that sell perishable products directly to consumers. The service, Fulfilled by Misfits, utilizes the online grocer’s five temperature-controlled warehouses and in-house delivery network.
