Is GoPuff just duplicating what's already available?

Mr. Gig

Dec 6, 2018
GoPuff is opening in Lansing. Yahoo! But do we really need so many different services all doing the same thing? From a consumer standpoint it's good because it gives us lots of choice and helps keep prices down. But from the gig workers' standpoint - how good is it really? Low prices mean low pay. Lots of competition means less work for each worker.

But what is GoPuff really doing that's so different from the thousand other delivery services that are out there now? They claim that their point of differentiation is that they deliver what you might find in a 7/11. But who cares... so does Instacart! Instacart delivers from grocery stores - but grocery stores have pretty much everything you can find in a 7/11 too. You can also use Postmates or TaskRabbit to get these kinds of things delivered. And it's mainly food you're interested in then you have DoorDash, GrubHub and Uber Eats.

I like the way they have their own warehouse where they stock the inventory. That seems like a much more efficient system than having workers running through grocery stores which are all laid out differently. It also gives them the opportunity to earn through a markup on all the items that they get at wholesale prices. (Instacart pays retail prices for everything and marks up those prices by about 15%). But the question for GoPuff is - can they really survive doing delivery on the razor thin margin that grocery retailers make? No other store has been able to make this work and make a profit. They've ALL lost money. And I believe they'll all continue to lose money until consumers (if ever) are willing to pay for the delivery drivers' actual time. But that would mean paying $15-$30 extra for each grocery delivery - no matter how few groceries you buy!