Gopuff is raising customer fees, cutting drivers’ shifts and slashing delivery hours, leaked documents shared with Business Insider reveal.
The rapid grocery delivery giant cut 3% of its global workforce last week and hiked its delivery fees last month amid rising level of uncertainty in the sector.
Delivery fees have gone from $1.95 to $2.95, marking the first rise in fees since the company was launched in 2013.
Alongside the hike in fees, Gopuff also raised the order minimum from about $10.95 to between $12.95 and $14.95 based on the market.
The alcohol fee or “regulated products fee” has also been increased from $2 to $2.95.
Market analysts have previously said that the low fees and minimums which are charged by rapid grocery delivery firms are not sustainable.
Leaked emails shared with Business Insider also show that the Philadelphia-based company reduced delivery in late January at dozens of stores in California and Arizona to “align with customer demand.”
Around 60 stores had their delivery hours slashed by 2-5 hours. Gopuff said the company also added more hours at several California locations than it had previously.
“Gopuff’s rapid expansion and growth across California is well documented and requires focus on the customer experience and optimising for operational efficiency,” the company told Business Insider.
“We will always innovate and prioritise creating a superior customer experience through operational excellence.”
“We optimise for long-term sustainability and have proven that the business is inherently profitable. Strong contribution margin we earn on each order – the average is $4.
“Gopuff was profitable for its first few years before entering hyper-growth.”
There are rumours of a possible public offering for Gopuff, as the company has made efforts to control costs after the initial pandemic boom.