Uber and startup GoPuff just struck a delivery deal. Here are the 13 companies competing for dominance of the $100 billion grocery industry.

Uber eats app on background of food menus

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The pandemic might be easing in the US, but competition between companies that deliver groceries and other essentials keeps heating up.

Uber and GoPuff, which have been pushing deeper into grocery delivery, said Tuesday that they struck an exclusive partnership to offer GoPuff’s inventory of chips, over-the-counter medicines, and other items for sale through Uber Eats. The partnership will kick off in 95 cities in June, and the companies plan to expand it to the entire US by summer’s end. 

The partnership will use GoPuff’s network of microfulfillment centers around the country to fill orders placed through Uber Eats, the companies said. That model separates GoPuff from Instacart, which relies on filling orders directly from shelves at retailers.

“With this partnership, we are able to leapfrog the competition in using Gopuff’s network of microfulfillment centers to instantly meet consumer demand for thousands of products—and I’m incredibly excited about the opportunities ahead,” Raj Beri, Uber’s head of grocery and new verticals delivery, said in a statement announcing the partnership.

Instacart remains a dominant player in the online-grocery-delivery space, which is projected to reach more than $100 billion in sales in the US in 2021.

But with the pandemic accelerating e-commerce food purchases, Instacart is not alone in attempting to take advantage of the industry’s growth. The San Francisco-based giant, rumored to be launching an initial public offering later this year, faces new challengers in the highly fragmented sector. Besides Uber and GoPuff, others include DoorDash, Weee, and a variety of local delivery startups like Fridge No More and Farmstead. 

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At the same time, many first-time online-grocery buyers are expected to go from “trial to habit” in 2021, according to a February eMarketer report.

“Many low-propensity buyers will return to their pre-pandemic purchase behaviors once the threat is sufficiently mitigated through vaccines,” Andrew Lipsman, …read more

Source:: Businessinsider

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