The race between on-demand delivery services
Whereas in the early days of food delivery services the prospect of having meals delivered on demand was a powerful draw to consumers, today consumer expectations of ‘bring it to me’ have grown and businesses that can only meet their own food needs risk losing out to multi-purpose competitors.
Gopuff, the Philadelphia-based on-demand delivery service that has focused on delivering essentials since the mid-2010s, announced its launch in New York on Wednesday, October 20, promising to meet the “instant needs” of consumers. inhabitants of the city. within 30 minutes. Today, the company is present in more than 1,000 cities in the United States and Europe.
“Gopuff put the instant needs category on the map and has spent the past eight years learning how to manage the complexities of the business, including the specific needs of each market,” said Gopuff Co-Founder and Co-CEO , Rafael Ilishayev in a statement. . “These lessons, coupled with Gopuff’s operational expertise, allow us to ensure that when we enter a new market, the customer experience will be exceptional.
With the global spread of the instant needs category, major restaurant and grocery aggregators are taking notice, expanding their offerings beyond the food category to compete.
While the first forays into this expansion were primarily focused on convenience and drugstore products (with the notable exception of Instacart’s partnership with Michael’s craft store), DoorDash opened up a wide range of possibilities for these services. delivery on demand. The company announced Wednesday, October 20, the release of a line of clothing and accessories in partnership with Sesame Workshop.
Read More: Michaels Partners With Instacart To Test Same Day Delivery
While the line itself may just be a publicity gesture, the implications are greater. On-demand services have mostly bypassed most retail categories. With this launch, however, DoorDash is delivering shirts, blankets, face masks, stickers and more.
Additionally, the line is sold through a direct-to-consumer (D2C) online store, another move that reflects what appears to be DoorDash’s long-term intention to offer its own stores and restaurants in competition with its suppliers. The delivery service already has an in-house digital convenience store and has also made inroads into the ghost kitchen space.
See also: DoorDash opens a second virtual kitchen
The on-demand delivery space is growing, but for now, consumers continue to prefer the buy now, get later (BNGL) options over the buy now, get now (BNGN) options. Research for the September report “How We Shop: Brick and Mortar’s Role in the Bring-It-to-Me Economy,” a PYMNTS and Carat collaboration from Fiserv, reveals that 91% of consumers shop at retail on Amazon and 70 % of consumers buy from other nationally known online marketplaces, while only 52% of consumers purchase items at retail from stores using online delivery aggregators.
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Additionally, the BNGL category has grown more over the past year than its on-demand counterpart. Forty-six percent of consumers said they made a little or a lot more online purchases from Amazon than last year, while only 20% made more retail purchases from aggregators than last year. For now, consumers are still happy to receive their retail purchases a day or two later.