March 28, 2022: -American instant delivery start-up Gopuff said Friday it has partnered with British grocery chain Morrisons to deliver items to people’s doors in minutes.
The multi-year agreement is seeing GoPuff sell products from Morrisons through its app in over 20 cities across the U.K. Morrisons will act as the wholesaler to GoPuff, delivering essential goods from a network of small warehouses known as dark stores.
“This partnership enables us to deliver an extreme range of Morrisons fresh food and customer favorites to front doors across the U.K. in minutes,” Morrisons Chief Executive David Potts said.
It marks Gopuff’s first tie-up with a rival retailer in Europe. The company says it doesn’t have any similar arrangements in the U.S.
The fast grocery craze has swept the U.S. and various parts of Europe, with several start-ups, which include Get, Gorillas, and Joker, now offering deliveries in 10 minutes.
In September, British food delivery firm Deliveroo is launching its own rapid grocery delivery service with Morrisons, known as Hop. Hop is only available in London.
The rapid grocery delivery market is already seeing signs of consolidation. GoPuff launched in the U.K. and France following its acquisition of speedy delivery start-ups Dija and Fancy. Istanbul-based Getir, meanwhile, acquired British rival Weezy.
GoPuff, which has increased $3.4 billion in funding from investors including SoftBank, said the deal would boost its continued expansion in the U.K.
“As we continue to expand Gopuff’s presence and product offering across the U.K., we’re proud to partner with one of the market’s largest and most beloved brands,” GoPuff CEO and co-founder Yakir Gola said.
Morrisons is currently undergoing a sale to U.S. private equity firm Clayton, Dubilier, and Rice (CD&R) for $10 billion.
On Thursday, Britain’s competition watchdog said it’s concerned the merger could push up gasoline prices in the U.K. and threatened to open an in-depth probe into the deal if those concerns aren’t adequately addressed.
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