Gopuff integrates SNAP, expands private label & fresh food offerings

13-Nov-2024 - Last updated on 13-Nov-2024 at 14:54 GMT

Source: Gopuff

Gopuff’s Supplemental Assistance Nutrition Program (SNAP) integration for its e-grocery platform will also include its recently introduced Basically Premium private label line, reaching millions of eligible households.

Gopuff’s Basically Premium line of beverages, snacks and pantry staples will continue to expand for its SNAP and other Gopuff customers at affordable prices. Its FAM membership program also offers savings on hundreds of essentials, “including $2 organic eggs,” according to the company.

Top items among SNAP-eligible customers include bananas, eggs, lemonade, ramen, water and milk, according to the company.

The company partnered with Misfits Market earlier this year, expanding its fresh fruit and vegetables, dairy, meat and bread, among others, GoPuff’s SVP of Business, Daniel Folkman, explained to FoodNavigator-USA.

Gopuff's microfulfillment centers can 'help improve food access'

Gopuff’s SNAP integration joins the ranks of other e-grocery platforms that included SNAP, such as Instacart, Mercato, Amazon and Walmart, however the company’s business model differs in its delivery network, inventory and micro-fulfillment centers. The company spent the last 11 years expanding its micro-fulfillment storage facilities around US cities, ideal for fast, small order in minutes.

Integrating the SNAP program into Gopuff’s business model will help reach the estimated 42.1 million SNAP recipients, many of whom have a disability, serve as caregivers and/or live in food deserts, Folkman explained.

He added, “Gopuff, which brings food and essentials to customers in as fast as 15 minutes, is uniquely positioned to help improve food access for low-income Americans.”

Leveraging Forage’s USDA certification, authorization processes for EBT payments

Gopuff partnered with Forage, a USDA-approved third-party payment processor, to enable, launch and scale the Electronics Benefit Transfer (EBT) card as a payment method on its platform. The company leverages Forage’s team of in-house SNAP experts for retailers needing support with USDA’s certification and authorization process. This includes anti-fraud capabilities and real-time analytics.

Earlier this year, Gopuff participated in the White House Challenge to End Hunger’s nationwide call-to-action to stakeholders to commit to end hunger and reduce diet-related diseases by 2030, in addition to donating consistently to local Feeding America food banks nationwide since 2019.

Private, government sectors continue addressing SNAP improvements

SNAP households contribute significantly to food and beverage sales, with 70% of SNAP dollars going towards food and beverages, according to Circana data.

In Aug. 2023, Instacart expanded online SNAP EBT payments nationwide, making it the first online grocery marketplace to integrate the program at the time.

Mercato, which focuses on smaller, independent grocers, accepted SNAP benefits in Sept. 2023, where the company positioned itself to provide foods centered around specific dietary and cultural needs.

In 2019, Walmart began accepting SNAP benefits for its online grocery marketplace for shoppers who live near its stores as part of a USDA pilot program, where the retailer captured more than a quarter of SNAP dollars annually in 2023, according to Numerator.

Earlier this year, USDA pushed states to improve its SNAP processes and reduce errors in its payment timelines.

Late administration of SNAP benefits have totaled nearly $6 billion in FY 2023, according to Circana. Since states are responsible for administering payments, USDA’s Food Nutrition and Consumer services provides virtual and onsite support and updated guidance tools on effective practices and strategies. Additionally, USDA offers $5 million in annual grants to incentivize states that improve the quality and efficiency of SNAP applications.