Why Is goPuff Partnering With Uber Eats?

eCommerce
Written By Rick Watson

UberEats and Instacart are in a titanic battle; Uber Eats recent partnership with goPuff just continues the escalation as everyone takes sides. It's a big prize -- online #grocery will reach $100B in 2021, and the segment will continue to grow. Here are a few of my thoughts on the tie-up:

  • For Uber Eats this is essential to fill out its nationwide selection. Fast convenience items and alcohol are two key segments that goPuff represents, in a lucrative market - college and younger people.

  • Uber Eats is being aggressive. This follows their acquisition of Drizly just a few months ago. Anytime you see a marketplace aggressively expanding selection because of increased consumer demand, you know it's a positive sign for the company.

  • For goPuff, what you are getting is distribution, and perhaps learnings - the "enemy of my enemy is my friend." Increase distribution also allows them to increase its market pricing power.

  • Surprisingly, Uber Eats is "white labeling" this goPuff offering. Is this a strategic mistake for goPuff to hide its brand? Or at this stage in its evolution, is this the best it could do?

  • One thought on this last point -- could it be the first step in an acquisition of goPuff?

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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