DoorDash has yet to open store to deliver groceries in Boise, but a competitor is coming
Watch out, DoorDash. It looks like you’re about to get some competition for your announced grocery delivery service.
Philadelphia-based GoBrands, which operates a delivery service for items commonly found in convenience stores, leased 5,000 square feet of space at 5160 W. Overland Road, according to an announcement by real estate broker TOK Commercial.
The storefront is next to the Albertsons store in the Hillcrest Shopping Center.
GoBrands operates Gopuff, a delivery startup that operates 250 micro-fulfillment centers that deliver 3,000 products to customers in more than 650 cities across the United States, spokesperson Abigail Benn said by email. The company promises 24/7 delivery in less than 30 minutes.
The Boise site is smaller than many of Gopuff’s other fulfillment centers, which average 7,000 square feet, Benn said.
A random survey shows prices charged by Gopuff are higher than those found at grocery stores, but comparable to convenience stores. But it offers lower delivery fees.
A 2-liter bottle of Pepsi, which retails at Albertsons in Boise for $2.29, was listed on Gopuff for $3.49 in Eugene, Oregon, a city it currently serves. A half-gallon of Horizon organic reduced-fat milk, listed for $4.99 at Albertsons, was listed for $5.79 at Gopuff. A pint of Ben & Jerry’s ice cream, listed at regular price at Albertsons for $5.29, was $5.99 at Gopuff.
While Albertsons charges $3.95 to $9.95 for delivery, depending on the time of day, Gopuff charges $1.95 per delivery.
Details about the Boise operation were not available.
“Gopuff is always expanding, but I don’t have anything to share for Boise specifically right now,” Benn said.
Gopuff plans to spend $30,000 for minor improvements at Hillcrest, in a space formerly occupied by Tri-State Beauty Supply & Salon. An application submitted to the city of Boise on July 8 said the company plans to add new fixtures, electrical outlets and a drinking fountain.
DoorDash plans to open a small DashMart warehouse in Garden City later this year to store grocery, convenience and prepackaged restaurant foods for home delivery. The space, where an Idaho Youth Ranch thrift store formerly operated, at 3840 W. Chinden Blvd., has 7,114 square feet.
Last month, DoorDash announced that it will provide delivery of more than 40,000 items from Albertsons Cos. stores, including fresh and prepared foods, grocery items, flowers and convenience items. In some markets, customers of Albertsons, Vons, Jewel-Osco and other company banners will be able to order through the Albertsons website for same-day delivery by DoorDash.
DoorDash has begun delivering groceries placed on Albertsons’ website and the Boise grocer’s smartphone app. That came after Albertsons laid off hundreds of workers earlier this year and idled its own trucks that had been used for home grocery delivery.
The DashMart store will be used to deliver goods from DoorDash’s own inventory and ordered through its app.
Gopuff was founded in 2013 by Yakir Golacq and Rafael Ilishayev while they were students at Drexel University in Philadelphia. The pair started out selling hookah supplies, hence the name.
Gopuff also operates 166 BevMo! liquor stores in California, Washington and Arizona. Last fall, Gopuff bought the privately held chain for $350 million. The purchase came a month after Gopuff raised $380 million in an investment round that valued the company at $3.9 billion.
Last month, Gopuff announced the purchase for an undisclosed price of Liquor Barn, a Kentucky company that operates 23 stores in the Bluegrass State.
On Wednesday, a Philadelphia newspaper detailed efforts by dozens of Gopuff drivers across the country to receive higher wages, better transparancy from supervisors and scheduling flexibility.
Philly Voice reported that drivers in 77 cities have signed a petition calling for better working conditions. The drivers say they’re paid lower wages than they were promised, after gas costs and other expenses were factored in. As independent contractors, the drivers said their take-home pay can average as low as $3 an hour.
Gopuff declined to comment to Philly Voice on the allegations.
This story was originally published July 15, 2021 at 1:06 PM.
