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Deliveroo partners with Gopuff to bolster delivery in the UK

In the face of formidable market challenges, Deliveroo has exhibited impressive performance in the first half of 2023.
In the face of formidable market challenges, Deliveroo has exhibited impressive performance in the first half of 2023.

Deliveroo has joined forces with Gopuff, an instant commerce company, to amplify its grocery delivery services throughout the United Kingdom.

Under this partnership, Deliveroo’s website will now feature over 3,000 essential products curated by Gopuff, ranging from fresh produce to soft beverages and household necessities. 

It plans to deliver these items within an astonishing 20 minutes or less.

The path to partnership

Deliveroo revealed that the rapid delivery of groceries accounted for 11% of the company’s revenue in 2022. In addition, Gopuff has experienced an increase in order volumes, surging by nearly 20% since the beginning of the year.

The grocery delivery company conducted market research before partnering with Gopuff. It found that two out of every five shoppers in the UK now opt to buy groceries every two to three days, highlighting a clear shift towards more frequent, smaller-scale purchases. 

Furthermore, convenience has emerged as the top priority for a significant 42% of individuals aged 18 to 34 regarding grocery shopping.

Deliveroo’s vice president for grocery and retail, Suzy McClintock, is positive about the endeavor, saying, “The rapid grocery delivery market is not going anywhere – since 2020, we’ve seen a growing demand for on-demand groceries and other essentials from our customers. Through this partnership with Gopuff, we will expand the selection of fresh food, drinks, and everyday essentials we offer customers.”

Meet Gopuff

Alberto Menolascina, the general manager of Gopuff UK, echoed this by saying, “As we continue to expand the Gopuff platform to create more seamless shopping experiences, we are excited to partner with Deliveroo to bring Gopuff’s leading fulfillment capabilities, unique assortment, affordable prices, and fast delivery to even more consumers across the UK.”

This development comes on the heels of Gopuff’s recent launch of a new advertising platform in the UK. 

This platform is designed to give brands insights into customer trends, enabling them to align their strategies with factors such as where and when consumers purchase. It’s a testament to companies’ continuous innovation and adaptability in the ever-evolving world of e-commerce and grocery delivery.

Deliveroo’s positive growth

The delivery company managed an impressive performance in the first half of 2023. The company showcased profitability and positive cash flow, according to reports.

It recently unveiled its H1 2023 interim results, providing a clear glimpse of its growth trajectory in a challenging market. Notably, the company achieved a notable 3% growth in Gross Transaction Value (GTV) and a commendable 5% surge in revenue. 

This robust performance comes against a tumultuous landscape characterized by high food price inflation and the lingering impact of COVID-related restrictions.

About the author

Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.

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