Dive Brief:
- Gopuff has launched Fam20, a 20-minutes-or-less delivery option for members of its subscription program, the company announced Tuesday.
- Members can use this option for a charge of $1.49 per order. During pilot tests of the program, the average delivery time was 17 minutes, with some as low as 10 minutes, the instant commerce company said.
- Gopuff is offering this speedy turnaround in an ultrafast delivery industry that has seen heavy attrition since it first took off during the beginning of the COVID-19 pandemic.
Dive Insight:
As one of the last quick delivery companies standing, Gopuff has been working to build out its Fam subscription program. While the heyday of ultrafast delivery may have come and gone, customers in key markets clearly want their items as quickly as possible and this move feeds that desire. Speed of delivery was the second most important factor when selecting a delivery option, according to a survey last year from Digital Commerce 360 and Bizrate Insights.
Gopuff’s data supports these findings: The company said it saw a 10% increase during its test of the Fam20 program. It can support these quick turnarounds with its micro-fulfillment centers positioned across the country.
If an order does not make it to the customer within 20 minutes, the fee is credited back to the consumer, Gopuff said.
“With a vertically integrated platform and national scale, we're able to offer our customers a unique combination of unparalleled speed at affordable prices," said Yakir Gola, co-CEO and co-founder of Gopuff.
Gopuff has worked to make its Fam membership more robust in the past year by taking an additional 30% off a hundred top essentials and and adding a student version — Student Fam — at a 50% discount.
Fam membership costs $79.99 per year or $7.99 per month, with the student version costing half that amount. The company says members of the program save about $30 per month on average.
