Rapid grocer Gopuff is price-beating Tesco superstores on more than 200 essentials.
The cheaper-than-Tesco prices are available for members of Gopuff’s paid-for subscription offering, FAM.
Since March last year, Gopuff has been price-matching Tesco Express stores on around 100 selected products, and is cheaper than Ocado’s rapid delivery brand Zoom by Ocado. In June this year, the quick-commerce player boosted its proposition with a section of its app called ‘Morrisons Corner’ where users can shop Morrisons own-label products as a “better-value alternative to big brands”.
The new members-only savings program covers a broad range of essentials including name brand milk, water, soda, beer, toilet roll and snacks.
During a small-scale pilot, member customers saved an average of £15.50 per month (£186/year), with many recouping the monthly cost of FAM membership (£5.49 per month or £54.99 annually) in as little as one order per month.
The price comparison, however, does not take into account prices offered by Tesco’s own loyalty scheme Clubcard.
“The launch of FAM Lower Than Low Prices is just the latest demonstration of our continued commitment to providing great value for our customers,” Yusuf Saban, senior director of revenue of Gopuff UK, told The Grocer.
“Gopuff already offers 200-plus branded staples at lower-than-Tesco Express prices, and customers save even more with our Morrisons Corner. Now, with FAM we’re providing even greater value, exclusively for our most loyal customers,” Saban added.
Gopuff launched in the UK in 2021, and now covers more than 70% of the greater London area and the entire metropolitan population of major cities including Bristol, Manchester, Liverpool, Newcastle, Birmingham, Leeds, and Cardiff.
Like rival rapid grocers, it has struggled to reach profitability as demand drops following the pandemic-prompted boom.
To maintain demand through the cost of living crisis, the sector has been working to present good value. Earlier this year Getir temporarily slashed the price of around a quarter of its groceries and household goods by half or more, in a bid to help customers deal with soaring food inflation.
FAM has proved effective for Gopuff, which revealed that orders placed by FAM members account for more than 50% of Gopuff’s total orders, and that members are the company’s most frequent and loyal customers.