🍿 A Deep-dive into goPuff's Strategy to Conquer the Grocery Market

Unlike other middlemen like Instacart and Uber Eats, GoPuff acts more like a retailer, buying directly from giants like Anheuser-Busch, PepsiCo and Unilever. It generates revenue not so much from the nominal delivery fee, but from slapping a hefty markup on the stuff and, increasingly, selling better placement on its app.

GoPuff is working on 3 special projects: 

• Catalogue expansion: besides grocery, GoPuff has added pharmacy, baby products, pet food, etc. It's also launched ghost kitchens to complement its offering with fresh food with coffee or pizzas. 


• Advertising for CPG brands: GoPuff has a self-served advertising platform for CPG brands offering ad pro

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GoPuff’s mad growth also puts it in direct competition with a sea of larger rivals. “The model was beautiful when they were delivering to college students late at night. But it falls apart when you expand beyond that to be a general-purpose solution to everybody in a 50,000-person town,” says Sucharita Kodali, a retail analyst at Forrester.