• The warehouse, in a neighborhood of Philadelphia, is routing orders to other locations, sources say.
  • Tensions have been running high between drivers and Gopuff managers in the area.
  • Gopuff has pushed back on the idea that issues around driver pay have been an obstacle.

A strike has hobbled one of Gopuff's busiest warehouses as workers protest pay and other issues, according to people familiar with the situation. This is the latest example of a wave of protests across the US known as Striketober. 

The Gopuff warehouse, in the Ludlow neighborhood of Philadelphia, is rerouting orders because it has been effectively shut down by the labor action, the people said. They spoke on condition of anonymity to discuss sensitive topics, but their identities are known to Insider. Drivers are also blocking access points to the facility in apparent solidarity with warehouse workers, according to the people and internal communications viewed by Insider. Currently, Gopuff is anticipating the Ludlow warehouse will be closed through the busy Halloween weekend.

Cars are shown outside a Gopuff warehouse in October 2021.
Cars outside a Gopuff warehouse in October 2021
Alexandre da Veiga

Since the summer, tensions have been running high between drivers and Gopuff managers in the area, with the drivers alleging that the company has been shortchanging them and refusing to hear their demands for more consistency and clarity about how much they're set to make on a shift.

Drivers have also said there have been pay errors. Warehouse managers who deal with these issues said fixing each one was a time-consuming process and emblematic of a lack of efficiency in Gopuff's operations. The $15 billion startup, backed by big investors such as SoftBank and Accel, has grown so quickly that its warehouses and supply chain are chaotic, with food sometimes thrown away en masse, Gopuff workers previously told Insider.

In a comment to Insider, a Gopuff spokesperson pushed back on the complaint from drivers that pay has been an issue.

"Gopuff's average earnings for delivery partners are among the highest in the industry, with average earnings in the U.S. between $18-25 per hour. Over the last two weeks, delivery partners from this facility in Philadelphia averaged about $18 per hour," a company spokesperson wrote in an emailed statement. Gopuff also said no warehouse workers protested.

A Gopuff sign is shown on the side of a company warehouse in October 2021.
A Gopuff sign on the side of a company warehouse in October 2021.
Alexandre da Veiga

In August, area drivers began voicing their frustrations over what they said was reduced pay. At the time, a spokesperson said the company had made some adjustments in the pay structure but again maintained that Gopuff drivers were paid above industry averages.

"[The adjustments are] industry standard and we do so to work to ensure our delivery partner earnings are not adversely affected. We will continue working to communicate any changes clearly, transparently and proactively to our delivery partners."

Are you an insider with insight to share? Got a tip? Contact this reporter via email at tdotan@insider.com or Twitter DM at @cityofthetown. Check out Insider's source guide for suggestions on how to share information securely.

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