Dive Brief:
- Several instant grocery delivery companies including Jokr, Gorillas and Reef Technology's Lightspeed Market have teamed up with Too Good to Go to sell their surplus food at a discounted price, according to an emailed press release on Tuesday.
- Too Good to Go's app serves as an online marketplace for customers to find unsold but still fresh food from grocers, restaurants, bakeries and cafes. The company says it has partnered with more than 7,000 food businesses across 12 major U.S. cities.
- Too Good to Go's partnerships come as fast delivery companies look to address food waste and find ways to get still-fresh surplus items on people's plates.
Dive Insight:
Food waste has long plagued the grocery and food industries. With their gaining presence in the U.S., instant grocery delivery companies, in particular, are facing scrutiny over how their business models could be contributing to the problem.
Gopuff, for example, came under fire last fall following several Insider stories saying the company reportedly let items spoil and threw out good food.
Instant-needs companies are growing quickly and want to ensure the products they sell are in stock. That approach can generate a significant amount of excess food, Tyler Simmons, U.S. head of key accounts at Too Good To Go, said in Tuesday's announcement.
“Our partnerships with JOKR and other instant-delivery grocers have allowed us to challenge the industry standard of discarding large amounts of perfectly good surplus at the end of each business day,” Simmons said. “By placing an emphasis on sustainable operations, these organizations are collectively paving the way toward a greener, healthier future and saving surplus at significant retail levels.”
Too Good to Go's app lets users select food from categories including baked goods, ready to eat and groceries near their inputted address. For $4 to $6, people can get a "surprise bag" with a mix of fresh produce, baked goods, packaged and prepared foods and other items. Too Good to Go said the items in the surprise bags from instant delivery grocery firms will vary daily.
Food sold through Too Good to Go is roughly one-third the store price, the company said in its announcement.
Roughly 30% to 40% of the U.S. food supply goes to waste, per the USDA. Brick-and-mortar grocers have also taken steps in recent years to divert excess food, including partnering with firms that help sell surplus items at a discount.
Founded in Copenhagen in 2016 and currently serving 17 countries, Too Good to Go is a certified B Corporation that launched in the U.S. last September. The company says 1.5 million people in the U.S. have received more than 1.3 million meals using its platform. Globally, the company has connected 50.8 million users with 113 million meals since its founding, per its website.
