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May 05, 2021

Uber partners with goPuff to expand grocery delivery nationwide

The partnership makes Uber more competitive against Amazon and Instacart, while helping goPuff grow as well

Technology Delivery
Uber goPuff partnership PA Images/Sipa USA

Uber and goPuff announced a partnership earlier this week to expand grocery and convenience store delivery across the country.

Uber and goPuff are joining forces to expand grocery delivery in the U.S. this summer.

The Philadelphia-founded delivery startup will create an inventory of items customers can order through the Uber app in 95 cities across the country next month. It will first launch in Chicago, Houston and Miami.

Uber pivoted to delivery services and acquired Postmates for $2.65 billion when the pandemic paused interest in rideshare requests, as well as the startup Drizly, which delivers alcohol. The company reported 30% fewer trips in 2020.

Delivery services grew dramatically during the pandemic, with many opting to stay home and avoid crowded grocery stores. 

Since the start of the year, the volume of searches for grocery and convenience store items grew 40%, Raj Beri, Uber's head of grocery and new verticals delivery, told Bloomberg. The partnership makes Uber more competitive against Amazon and Instacart.

While goPuff is facilitating the deliveries and logistics, Uber will take a slice of the profits from each transaction made in its app. The deal will help goPuff grow and reach more cities as well.

Last week's top ordered products from goPuff were toilet paper, White Claw and Tylenol. GoPuff recently acquired $1.5 million in funding for an expansion project to reach more cities, feature more items and utilize new technology.

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