The news: Gopuff launched Powered by Gopuff, a suite of services that enables brands to use the delivery firm’s logistics network, fulfillment infrastructure, and technology to offer delivery from their own apps or websites.
- The first offering under the “Powered by” umbrella is Storefronts Powered by Gopuff, which is a customizable Shopify theme. Consumer-packaged goods (CPG) brands that use the platform to launch a direct-to-consumer site will have orders routed to Gopuff micro-fulfillment centers.
- Gopuff plans to launch another service, called Fulfillment Powered by Gopuff, in Q2. Brands will be able to use that standalone warehousing and logistics solution to integrate and promote delivery on their existing D2C websites. The service will initially be open to Shopify merchants whose products are available on the Gopuff consumer platform.
Why it matters: The rapid delivery model doesn’t look as appealing now compared with early in the pandemic, as consumers have returned to stores and rising costs have led people to think twice before paying for the convenience of delivery. That’s driven Gopuff and other delivery players to look for new revenue streams.
- White-label solutions offer a simple way for delivery companies to capitalize on their existing infrastructure. That’s why DoorDash offers DoorDash Drive, Instacart offers Retailer Storefronts, and Uber Eats offers Uber Direct.
- Nearly every platform, including Gopuff, has also leaned on retail media to boost the bottom line.
The big takeaway: It makes sense for a company like Gopuff to diversify its offerings. Still, the long-term viability of the company’s model remains a question.
