Gopuff partners with Grubhub for grocery delivery

FILE PHOTO: A Grubhub delivery bag is seen on a bicycle in Brooklyn, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly

(Reuters) - Grocery delivery platform Gopuff said on Tuesday it had partnered with Grubhub to bring more groceries, alcohol, baby supplies and other essentials to the meal delivery company's app.

The tie-up showcases SoftBank-backed Gopuff's delivery services before millions of Grubhub's U.S. customers through a virtual store on Grubhub's marketplace at a time when food delivery companies are looking to revamp their business to keep inflation-hit consumers shopping.

Gopuff orders placed on Grubhub's app will be fulfilled by Gopuff's logistics, the companies said, adding that the pilot project will begin on Tuesday in select locations in New York City, Los Angeles, Chicago, Boston, Philadelphia and Austin.

Gopuff in May 2021 had entered into a similar partnership with Uber Technologies Inc to expand the delivery of essential items in the United States.

The Gopuff deal also comes at a crucial time for Grubhub as its parent company, European meal delivery company Just Eat, looks to sell all or part of the loss-making firm after facing pressure from investors. Takeaway bought Grubhub last year for $7.3 billion.

Members of Grubhub's membership program can also take advantage of free delivery on Gopuff orders on purchases valued at $12 or more, the companies said.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh Kuber)

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