Robinhood Collaborates With Gopuff for Cash Delivery Offering

Robinhood Markets, Inc. HOOD has entered into a tie-up with delivery startup Gopuff to allow users to withdraw cash from their brokerage accounts and get it delivered at their doorstep. This was reported by an article on MSN, citing a Wall Street Journal report.

The delivery charges for the service will be $6.99 for retail clients and $2.99 for users having $100K in assets across Robinhood accounts.

Details of Robinhood’s Partnership

This idea was introduced by Vlad Tenev, CEO of Robinhood, in March, when he announced Robinhood Banking to bring private banking experience to Robinhood Gold members.

Deepak Rao, vice president and general manager of Robinhood Money, told the Wall Street Journal that the cash delivery alternative could reduce the need for visiting banks or ATMs. “Everything gets delivered to their house, from burritos to medicine. Why not cash? Now imagine any reason you could ever think of for going to the bank.”

Customers would need to verify their identity through a code to receive the delivery, rather than collecting it as a standard package delivery.

This offering has been launched in New York, with San Francisco, Philadelphia, Washington and other major cities set to follow in the coming months. Clients need to subscribe to $5 monthly Robinhood Gold subscription to avail the services, and should have $1,000 minimum balance in monthly direct deposits into their Robinhood bank accounts.

This move aligns with Robinhood’s push to become a one-stop shop for clients’ financial needs. The company has been diversifying its products to gain market share and improve profitability. Last month, it launched futures trading in the United Kingdom. In September, it rolled out Robinhood Ventures to expand retail access to the private market. Also, it introduced the “Asset Match” feature through TradePMR to expand into the registered investment adviser market. Additionally, it launched Robinhood Social, enabling a copy trading feature for investors.

Robinhood’s Price Performance & Zacks Rank

HOOD shares have jumped 100.3%, outperforming the industry’s 23.3% growth in the past six months.

Currently, Robinhood sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Strategic Partnerships Pursued by Other Finance Firms

Earlier this week, State Street Corporation STT entered into a strategic co-operation agreement with Albilad Capital to support the latter’s securities services offerings in Saudi Arabia, reaching a milestone in its long-term investment and commitment to the Kingdom’s growing financial sector.

The agreement aligns with Saudi Arabia’s Vision 2030, which focuses on creating a diversified and resilient economy underpinned by a modern financial infrastructure. By integrating State Street’s global product suite with Albilad Capital’s deep local expertise, the partnership aims to enhance operational efficiency, improve market competitiveness and accelerate the development of the Kingdom’s capital markets.

Last month, BlackRock Inc.’s BLK Aladdin platform entered into a multi-year collaboration with OTCX, a leading regulated fintech, aiming to digitize dealer-to-client “voice” derivative trading and expand the option offerings for clients.

This partnership seeks to address the industry’s long-standing dependence on manual, voice-based workflows in complicated derivatives. The BLK and OTCX collaboration will provide better choices for vanilla derivatives to clients for electronic trading.

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This article originally published on Zacks Investment Research (zacks.com).

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