Grocery start-up Gopuff partners with UK retail giant Morrisons for speedy deliveries

LONDON — American instant delivery start-up Gopuff said Friday it has partnered with British grocery chain Morrisons to deliver items to people’s doors in a matter of minutes.

The multi-year agreement will see Gopuff sell products from Morrisons through its app in more than 20 cities across the U.K. Morrisons will act as the wholesaler to Gopuff, which delivers essential goods from a network of small warehouses known as dark stores.

“This partnership will enable us to deliver a very strong range of Morrisons fresh food and customer favourites to front doors across the U.K. in a matter of minutes,” Morrisons Chief Executive David Potts said in a statement.

It marks Gopuff’s first tie-up with a rival retailer in Europe. The company said it doesn’t have any similar arrangements in the U.S.

The fast grocery craze has swept the U.S. and various parts of Europe, with several start-ups including Getir, Gorillas and Jokr now offering deliveries in as little as 10 minutes.

In September, British food delivery firm Deliveroo launched its own rapid grocery delivery service with Morrisons, called Hop. Hop is currently only available in London.

The rapid grocery delivery market is already seeing signs of consolidation. Gopuff only recently launched in the U.K. and France following its acquisition of speedy delivery start-ups Dija and Fancy. Istanbul-based Getir, meanwhile, acquired British rival Weezy.

Gopuff, which has raised $3.4 billion in funding to date from investors including SoftBank, said the deal would boost its continued expansion in the U.K.

“As we continue to expand Gopuff’s presence and product offering across the U.K., we’re proud to partner with one of the largest and most beloved brands in the market,” Gopuff CEO and co-founder Yakir Gola said.

Morrisons is currently undergoing a sale to U.S. private equity firm Clayton, Dubilier and Rice (CD&R) for $10 billion.

On Thursday, Britain’s competition watchdog said it’s concerned the merger could push up gasoline prices in the U.K., and threatened to open an in-depth probe into the deal if those concerns aren’t adequately addressed.

Gopuff is a two-time CNBC Disruptor 50 company that most recently ranked No. 36 on the 2021 list. The 10th annual Disruptor 50 list will be revealed this May.