| Type | Private |
|---|---|
| Industry | Online Groceries |
| Founded | February 2006 |
| Headquarters | Minneapolis and St. Paul, MN, USA |
| Key people | William Orkin |
| Products | Groceries |
| Services | Grocery delivery |
| Website | www.GopherGrocery.com |
Gopher Grocery is an online grocer serving the Twin Cities Metropolitan area of Minnesota. It was founded in December of 2005 by William Orkin. It was based on the belief that grocery delivery does not have to be expensive, with its key selling points being a $2 delivery fee and low prices that compare to the supermarket.[1] Initially, the company focused on delivering to college students on the University of Minnesota campus, an area with no major grocery stores within walking distance.[2] Gopher Grocery now services over 6,000 residential customers, as well as businesses, childcare facilities, schools, and group homes across 103 zip codes in the Minneapolis-Saint Paul area with surrounding suburbs. The company's annual revenue is over $1 million as of 2010.
Gopher Grocery’s main competitor was SimonDelivers who eventually shut down and was bought out by Coborn’s Incorporated in 2008. SimonDelivers reopened as CobornsDelivers that same year and became one of Gopher Grocery’s main competitors along with Lunds/Byerly’s. Gopher Grocery began with a similar model to SimonDelivers and CobornDelivers, keeping grocery inventory in a warehouse and delivering within an hour of ordering. In 2006, Gopher Grocery changed their model by taking the idea of just-in-time (business) to the extreme. The company began taking online orders for next-day delivery and shopping for the groceries on the morning of the delivery day, thus eliminating the need for a warehouse and inventory.[3] This model is what makes Gopher Grocery unique in the online grocer business.[4] This lack of inventory, along with convenience and low prices,[5] has helped it survive and experience successful growth by avoiding the pitfalls of other online grocery businesses including SimonDelivers and Webvan [6]
Gopher Grocery sources items from local, ultra-efficient distributors. Groceries are kept cold and fresh for delivery through the use of insulated containers with dry ice. The company uses fuel-efficient vans, painted yellow with the company logo on them.[7] Gopher Grocery delivers groceries directly to the consumer instead of leaving bins on porches or in lobbies, a strong point in terms of both customer service and food safety.