Dive Brief:
- Gopuff revealed Goodnow, its new line of private-label health and wellness items, including medications and at-home test kits, on Monday. In the coming months, Gopuff will roll out more products from the Goodnow line, including electrolyte drinks, bandages, antihistamines, antacids and more.
- Separately, Gopuff announced on Tuesday a tie-up with Grubhub to make thousands of its convenience items including household items, pet supplies and food available nationwide on the Grubhub Marketplace in the coming weeks. The companies began a pilot on Tuesday in New York City, Los Angeles, Chicago, Boston, Philadelphia and Austin, Texas.
- The Grubhub partnership creates a new channel for Gopuff to reach consumers around the country, while the new private label line adds another category to meet consumer needs.
Dive Insight:
Gopuff is looking to expand both its assortment and delivery reach as the number of instant delivery competitors in the U.S. shrinks and financing dries up in the quick commerce sector.
With the Grubhub partnership, more than 500 Gopuff locations will soon offer nationwide delivery of convenience items for Grubhub users. Alcohol will be available in “select cities,” the announcement noted.
Gopuff will also launch virtual concepts, including its pizza brand, The Mean Tomato, and virtual menus for brands such as Unilever, on Grubhub.
"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 Gopuff's unparalleled one-stop shopping experience,” Daniel Folkman, senior vice president of business at Gopuff, said in the Tuesday announcement.
For Grubhub, the tie-up could boost its restaurant delivery business: The announcement noted that Grubhub users who buy convenience items on Grubhub end up ordering more from restaurants in the following month.
“These expanded offerings complement Grubhub's vast restaurant network and keep diners engaged across the Grubhub Marketplace,” Ariella Kurshan, senior vice president of growth at Grubhub, said in the announcement.
Meanwhile, the debut of Goodnow underscores Gopuff’s increasing focus on private-label items, as the company released its line of household essentials in January and vegan snacks last month.
The health and wellness category has become not only an $80+ billion market in the U.S., but one of Gopuff’s fastest-growing categories, said Jessica Glendenning, Gopuff’s director of private label, in the announcement.
When surveying consumers about what product innovation they’d like to see from Gopuff, over-the-counter medications emerged “as a great fit,” according to the announcement. Additionally, consumers also expressed interest in accessing pain relievers, cold and flu remedies, allergy medications and first aid from Gopuff.
“Informed by data, insights, and feedback, we know that Goodnow is an inherent fit for our customers and the Gopuff platform,” said Glendenning.
The Goodnow line includes pain medications such as ibuprofen, acetaminophen, naproxen and headache relief; allergy medications including loratadine, cetirizine and diphenhydramine; cold, flu and sinus congestion relief; sleep aid products; and at-home diagnostic test kits for various bodily infections.
All Goodnow products are produced and controlled according to quality standards and manufactured in a third-party Good Manufacturing Practice-certified facility, according to the announcement.
Goodnow builds on the early success of Gopuff’s Basically line, which includes bottled water, snacks, batteries, paper products and other household essentials. In mid-September, Gopuff announced the addition of Good Eat’n, a line of plant-based snacks the company co-created alongside NBA star Chris Paul that includes a selection of vegan chips, popcorn, puffs and rinds.
Private label product sales have surged this year as consumers seek more affordable retail items amid high gas prices, persistent inflation and supply chain issues.
