Gopuff has apparently turned to competitors for assistance in filling a delivery driver shortage.
The Philadelphia-based rapid delivery service has been using Uber and DoorDash to help fulfill orders, the Financial Times (FT) reported Monday (March 27). It marks the latest sign of trouble for the once-busy delivery sector.
While both Uber and Gopuff acknowledge that at least 4% of all Gopuff orders in the U.S. are handled by Uber drivers, that number could climb higher, according to the report. That’s because the companies have also discussed using Uber drivers for Gopuff orders made via Uber Eats.
Reached for comment by PYMNTS, Gopuff disputed the driver shortage. The company acknowledged the same 4% figure handled by Uber Direct, adding that “80% of our locations have a delivery partner waitlist.” PYMNTS has reached out to Uber for comment but has not yet received a reply.
Gopuff has a separate arrangement with DoorDash, with the Gopuff-owned alcohol retailer BevMo appearing on DoorDash’s app, with orders handled by DoorDash couriers, the report said.
The news comes weeks after reports that Gopuff was letting go about 2% of its workforce, the third major round of job cuts in the past year.
As PYMNTS noted at the time, it was the latest indication of the effect worldwide macroeconomic headwinds were having on the sector, with the British delivery service Deliveroo also announcing in February it was laying off 9% of its workforce.
“In recent years we grew our headcount very quickly,” Deliveroo CEO and founder Will Shu said at the time. “This was a response to unprecedented growth rates supported by COVID-related tailwinds. We now face serious and unforeseen economic headwinds.”
Last week saw reports that another delivery firm, Just Eat Takeaway was cutting 1,700 driver jobs in the U.K., where it will instead now employ gig workers.
The move marked a shift for Just Eat, which had sought to stand out from competitors in the U.K. by not employing gig workers, and whose CEO had once argued the gig economy “has led to precarious working conditions across Europe, the worst seen in 100 years.”
These changes are happening as consumer behavior is changing as well, with many diners now unwilling to pay extra for on-demand food delivery.
Research from PYMNTS’ February study, “Connected Dining: Rising Costs Push Consumers Toward Pickup,” showed that 48% of restaurant customers said inflation has made them more likely to order pickup than delivery.