Gopuff looks to boost membership program amid struggles


08/09/2023
Gopuff is aiming to boost its $7.99-per-month Fam membership program as it has struggled to reach price-sensitive consumers who have pulled back on e-commerce shopping.

As Gopuff navigates the shifting landscape of the quick commerce sector, the company is banking on a membership program that’s now responsible for almost half of its orders. This strategic move comes in the wake of a decline in the rapid delivery industry’s fortunes.

Gopuff’s fresh initiative, dubbed “Lower Than Low Prices,” is strategically aimed at staple items that customers frequently order. This approach seeks to transform Gopuff from a mere impulse purchase platform for snacks and beverages into a regular shopping destination for its members.

The company’s press release highlighted specific deals, such as a dozen organic eggs for $2 through the discount program. Recent weekly offers included substantial discounts on products like Rao’s marinara sauce and Sweet Street cookies. Additionally, private label items like Basically dish soap and toilet paper are discounted at rates 30% below the national average.

To facilitate this transformation, Gopuff now presents Fam member discounts and deals for non-members within a dedicated “Deals Center” tab on its app. This move underscores Gopuff’s commitment to catering to a broader range of customer preferences and needs.

After experiencing remarkable growth during the peak of the COVID-19 pandemic, Gopuff has encountered challenges over the past year. The company faced a notable slowdown and took action, including laying off hundreds of employees and closing several fulfillment centers. The broader quick commerce industry also faced difficulties as shoppers reverted to in-store purchases and capital funding tightened.

Despite these hurdles, Gopuff is clearly adapting to the evolving consumer landscape. A recent report from The Information in June indicated that the company, known for its 30-minute delivery promise, is focused on bolstering gross margins and is targeting profitability by the next year. This strategic approach demonstrates Gopuff’s determination to not only weather industry challenges but emerge stronger in a dynamic market.

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