How to Build an Online Delivery Platform Like Gopuff?

The digital commerce boomed a lot during and after the COVID-19 outbreak. People switched to online shopping more than ever with 62% of US shoppers saying they make online purchases more than they did before the pandemic.

All this fortunately led to the emergence of quick commerce delivery services, including countless online and on-demand delivery platforms with a commitment to deliver items right to the doorsteps within minutes.

GoPuff is one of the leading on-demand online delivery platforms with a strong foothold in the US and UK. It specializes in the immediate delivery of everyday essentials making people’s lives easier in this modern era where time is a valuable resource. GoPuff cuts down the role of intermediaries, owns its warehouses, and directly resells the products bought from the manufacturers. All this draws inspiration to entrepreneurs of building a platform like Gopuff.

In this blog, we cover how GoPuff started, its working, revenue models, and how you can build a platform like this.

Success Story of GoPuff: How All It Began?

Founded in 2013 by two college students, Rafael Ilishayev and Yakir Gola, Gopuff is a leading grocery delivery platform serving customers across the US and UK. They promised speed with an aim to fulfill the immediate everyday customer needs roughly in 30 minutes.

• By 2014, GoPuff acquired a customer base of 25k.
• It bought a UK-based food delivery service - Fancy in the year 2021.
• Over time, GoPuff acquired 7 different businesses, expanding its product lines such as GoPuff Kitchen and more.
• GoPuff partnered with Uber Eats to sell the goods through the Uber Eats app.
• Further, GoPuff acquired a startup company in June 2021 - Liquor Barn.
• The number of active users significantly increased to 3 million by January 2022.
• In May 2022 only, it raised revenue of $3.4 billion with a total valuation of $15 billion.

With GoPuff’s services available 24/7 in nearly 650 cities across the US and 250 miro-fulfillment centers, the platform is trusted by college students and millennials.

GoPuff Business Model Explained: How It Works?

Let’s begin by understanding how the GoPuff platform works. GoPuff operates on an inventory-based model. It buys products directly from multiple manufacturers and has its own warehouses to store these products. Additionally, they have a vast network of delivery partners in multiple locations, ensuring they stand by their commitment to delivering orders easily and quickly.

• The customers can sign up and browse the products on the GoPuff app or website. Once they have added the delivery location, they can further browse the items and add them to their cart.

• Upon selecting the products, the customers can make the payments via debit or credit cards and place their orders.

• Afterward, the delivery person picks up the ordered products from the company’s nearby facility and delivers the same to the customer in minimal time.

Value Proposition of GoPuff

GoPuff’s business model benefits its 3 stakeholders i.e. customers, manufacturers, and delivery persons.

Customers:

• Can conveniently place orders anywhere, anytime
• Access a wide range of household products
• Get the orders delivered quickly

Delivery Persons:

• Can accept orders according to availability
• Opportunity to earn more by delivering orders quickly

Manufacturers:

• Receive regular and bulk quantity orders from Gopuff
• Increase brand awareness by listing on the platform

Revenue Models: How Does GoPuff Make Money

There are multiple revenue streams explained below by which GoPuff generates revenue. Let’s explore these.

Markup Fee

GoPuff purchases products from various suppliers, and charges a markup on the products they sell to the customers. This markup allows them to generate revenue on each item sold through their platform.

Delivery Fee

The platform incurs a delivery fee of $1.95 delivery fee which is waived for orders exceeding the cost of $49. An additional fee of $2 is charged to orders containing regulated products such as alcohol, vaping items, tobacco, etc.

Membership Fee

GoPuff runs a membership program like ‘GoPuff Fam’ that offers customers multiple benefits such as no order fee and more only when they pay $7.99 as a recurring fee. This monthly membership fee contributes to GoPuff’s revenue stream.

Ad Revenue

Another way GoPuff makes money is the ads. GoPuff partners with brands who want to feature their products prominently on its platforms and run ads and campaigns to showcase their products at the top of searches. Here, GoPuff earns a commission for each customer click on ads.

Key Features Required to Build a Grocery Delivery Platform Like GoPuff

• Product catalog system
• Easy signup/registration
• Inventory management
• Multiple revenue streams
• Venmo payment support
• Multicurrency
• Order tracking
• Search & filters
• Delivery order management
• Push notifications
• Schedule ordering
• Buy online, pick-up in-store (BOPIS)
• Gift cards
• Order modification and cancellation
• Customer support
• Analytics and reports
• Geolocation and maps

How Can Growcer Help You Build an Online Grocery Delivery Platform Like GoPuff?

Growcer is a hyperlocal delivery platform that comprises all the essential features required to build an online grocery delivery business. It is a white-label solution with lifetime ownership and no recurring charges. The platform supports multiple revenue streams to boost business revenue and offers a straightforward installation process, simplifying deployment.

Additionally, the online grocery software is equipped with readymade Android and iOS apps for delivery staff and platform buyers. Simply put, Growcer is an affordable and time-efficient turnkey platform to build and run your online delivery marketplace with reduced time-to-market.

Key Features of Growcer:

• Powerful dashboards
• Fully scalable and customizable
• Reports and analytics
• Multiple payment gateways
• Real-time inventory management
• PCI compliant
• Free technical support

Closing Remarks

The online grocery delivery business is a competitive segment in the retail industry that is growing each day due to the shopping experience it delivers to the customers.

Here, entrepreneurs can act wisely by simply setting up an online delivery marketplace that welcomes sellers/vendors to showcase their products and delivery staff to meet customer needs. It will deliver a whole new experience to the customers and help the delivery business to keep pace with the ever-evolving landscape.