(Bloomberg) -- Grubhub Inc. and Gopuff are teaming up to provide fast delivery of groceries, alcohol and household items.
The partnership announced Tuesday will initially be rolled out in New York, Los Angeles, Boston and three other US cities before arriving in hundreds of Gopuff locations across the country in the coming weeks.
By joining forces, restaurant delivery platform Grubhub will be able to tap into Gopuff’s hundreds of mini warehouses filled with convenience items to deliver more selection to customers. Gopuff, a Philadelphia-based startup founded in 2013, will be able to expand its reach with access to Grubhub’s 32 million diners.
“By combining our board assortment, logistics network and infrastructure with the virtual storefronts of Grubhub, we can create more seamless one-stop shopping experiences for customers, instantly,” Daniel Folkman, senior vice president of business at Gopuff, said in a statement.
The agreement follows Grubhub’s partnership with Amazon.com Inc., announced in July, which gave Amazon Prime users a one-year membership to the food delivery service with no delivery fees. The Chicago-based food delivery platform has struggled since an early pandemic surge. Grubhub’s owner, the London-based Just Eat Takeaway.com, wrote down the value of the company by $3.1 billion in August and has said it’s exploring a partnership or sale of the business, which it bought for $7.3 billion in an all-stock deal in 2021.
The Gopuff partnership will help Grubhub compete with other delivery services such as DoorDash Inc., which has its own convenience store service called DashMart.
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