As GoPuff heads toward an anticipated IPO, the quick commerce company is launching its own line of private label products — a move more in line with AmazonThe e-commerce model is more successful than DoordashUber and’s are the delivery platforms.

Starting with water, the brand “Basically”, followed by household products like paper, cleaning supplies, and food storage, will be the lineup. In the next few weeks, Gopuff will add snacks to its product line. Gopuff expects to introduce four brand names and more than 100 products over the course of this year.

According to the Private Label Manufacturer Association (PLMA), the market for private labels was $159 Billion in 2020. This has attracted traditional as well as e-commerce retailers. TargetAmazon.

Gopuff’s new private label expansion marks the latest attempt by the start-up to differentiate itself from other convenience delivery businesses. Gopuff has its own micro-fulfillment center with fully-time staff. Other companies provide a network that connects customers, drivers, and retailers. Gopuff reports that 30 percent of Americans can be found within a mile and a half from a Gopuff fulfillment facility. 

Gopuff has 70 cooking facilities that prepare meals from its own recipes and those of partners. Instacart made it clear that they will offer prepared meals from supermarkets to help them compete against meal delivery businesses. Gopuff raised over $3.5 billion, and was valued last year at $15 billion. According to someone familiar with the matter, Gopuff is in process of raising $1.5 million in convertible debt.

Over the last few years, convenience delivery competition has increased as DoorDash and other companies have demonstrated. UberInstacart, Doordash and others expand their convenience services. Doordash’s national version of micro-fillment centers called DashMart was launched in 2020. YipitData has found that Doordash holds a larger share of convenience delivery markets than Gopuff, which is 23%. Uber and Instacart have 15% and 16%, respectively.  

Private investors are keen to make quick money. CoreSight Research has estimated that $5.9Billion in capital has been invested by investors to this end. But despite the influx of cash from private investors, quick commerce does face challenges, including intense competition, high cash burn and hyper-localization of fulfillment centers, all of which have yet to be tested by public markets.