The strategy is largely out of the same playbook as other on-demand apps—capture customers, consolidate control over a high-frequency behavior, expand and cross-sell to other higher-margin categories. But their challenges are significant as well, from spoilage rates on grocery to hard-to-predict inventory requirements and building relationships wit... See more

goPuff competes more with convenience stores like 7-Eleven than supermarkets like Walmart meaning that the company (i) is offering prices that are at-par only with convenience stores and (ii) has a reduced number of SKUs and does not sell fresh products like supermarkets.

We believe that suburban markets and smaller metropolitan areas have experienced significantly higher growth compared to larger metropolitan markets because these smaller markets have been historically underserved by merchants and platforms that enable on-demand delivery. Accordingly, residents in these markets are more acutely impacted by the lack... See more