Dive Brief:
- Grubhub is partnering with ultrafast delivery startup Buyk to offer consumers in New York City and Chicago access to a range of grocery and convenience items stocked by Buyk in 15 minutes or less, the companies announced in a joint press release on Wednesday.
- Buyk will manage order fulfillment and delivery under the partnership, which will bring more than 2,000 products from local and national suppliers as well as items under its private label to Grubhub's marketplace.
- Grubhub's new partnership continues its efforts to expand its presence in the growing convenience and rapid grocery delivery spaces.
Dive Insight:
The collaboration gives Grubhub the opportunity to tap shopper interest in accessing on-demand groceries and instant-needs items as a way to broaden the appeal of its online marketplace, which is centered around delivering restaurant meals.
“This partnership will make the Grubhub Marketplace a one-stop shop for restaurants, convenience items and grocery supplies, building more diner loyalty and helping drive even more orders to all of our restaurant and merchant partners," Kyle Goings, director of growth and new verticals at Grubhub, said in a statement.
In addition to delivery, Grubhub and Buyk will work together on product management, food waste optimization and developing a hyper-localized assortment, Buyk CEO James Walker said in the announcement. The companies will also cooperate on "smart routing" and safety protocols, Walker added.
The companies plan to donate excess produce and other perishable items to local nonprofit organizations, according to the press release.
Grubub faces stiff competition as it looks to attract customers looking for quick delivery of essential goods. Those companies include restaurant delivery rival DoorDash, which has been expanding in the on-demand alcohol delivery space and working to offer rapid delivery for retailers. Grubhub also must contend with Gopuff, which brought its instant-needs delivery service to New York City last October.
Grubhub's new partnership with Buyk follows the anouncement last week that the company's on-demand convenience channel, Grubhub Goods, is now available across the country. Through the service, which was initially piloted in Manhattan, Grubhub customers have access to products like energy drinks and personal care items stocked by 7-Eleven.
The arrangement with Grubhub gives Buyk an opportunity to build its brand as the fledgling company looks to gain momentum in the competitive ultrafast delivery market. Buyk debuted last fall in New York City, where it is competing head-on with several companies including Gorillas, Fridge No More, Gopuff, Getir and Jokr.
Buyk brought its service to Chicago in December in an effort to expand its geographic reach alongside competitors. At the end of last year, Buyk also started rolling out private label products.
