diff --git a/packages/gatsby-source-contentful/src/cache-image.js b/packages/gatsby-source-contentful/src/cache-image.js
deleted file mode 100644
index 3386eedb65be6..0000000000000
--- a/packages/gatsby-source-contentful/src/cache-image.js
+++ /dev/null
@@ -1,85 +0,0 @@
-const crypto = require(`crypto`)
-const { resolve, parse } = require(`path`)
-
-const { pathExists, createWriteStream } = require(`fs-extra`)
-
-const downloadWithRetry = require(`./download-with-retry`).default
-
-const inFlightImageCache = new Map()
-
-module.exports = async function cacheImage(store, image, options, reporter) {
-  const program = store.getState().program
-  const CACHE_DIR = resolve(`${program.directory}/.cache/contentful/assets/`)
-  const {
-    file: { url, fileName, details },
-  } = image
-  const {
-    width,
-    height,
-    maxWidth,
-    maxHeight,
-    resizingBehavior,
-    cropFocus,
-    background,
-  } = options
-  const userWidth = maxWidth || width
-  const userHeight = maxHeight || height
-
-  const aspectRatio = details.image.height / details.image.width
-  const resultingWidth = Math.round(userWidth || 800)
-  const resultingHeight = Math.round(userHeight || resultingWidth * aspectRatio)
-
-  const params = [`w=${resultingWidth}`, `h=${resultingHeight}`]
-  if (resizingBehavior) {
-    params.push(`fit=${resizingBehavior}`)
-  }
-  if (cropFocus) {
-    params.push(`f=${cropFocus}`)
-  }
-  if (background) {
-    params.push(`bg=${background}`)
-  }
-
-  const optionsHash = crypto
-    .createHash(`md5`)
-    .update(JSON.stringify([url, ...params]))
-    .digest(`hex`)
-
-  const { name, ext } = parse(fileName)
-  const absolutePath = resolve(CACHE_DIR, `${name}-${optionsHash}${ext}`)
-
-  // Query the filesystem for file existence
-  const alreadyExists = await pathExists(absolutePath)
-  // Whether the file exists or not, if we are downloading it then await
-  const inFlight = inFlightImageCache.get(absolutePath)
-  if (inFlight) {
-    await inFlight
-  } else if (!alreadyExists) {
-    // File doesn't exist and is not being download yet
-    const downloadPromise = new Promise((resolve, reject) => {
-      const previewUrl = `http:${url}?${params.join(`&`)}`
-
-      downloadWithRetry(
-        {
-          url: previewUrl,
-          responseType: `stream`,
-        },
-        reporter
-      )
-        .then(response => {
-          const file = createWriteStream(absolutePath)
-          response.data.pipe(file)
-          file.on(`finish`, resolve)
-          file.on(`error`, reject)
-        })
-        .catch(reject)
-    })
-    inFlightImageCache.set(absolutePath, downloadPromise)
-    await downloadPromise
-    // When the file is downloaded, remove the promise from the cache
-    inFlightImageCache.delete(absolutePath)
-  }
-
-  // Now the file should be completely downloaded
-  return absolutePath
-}
diff --git a/packages/gatsby-source-contentful/src/extend-node-type.js b/packages/gatsby-source-contentful/src/extend-node-type.js
index f7b899356af6b..f857f93e53dc8 100644
--- a/packages/gatsby-source-contentful/src/extend-node-type.js
+++ b/packages/gatsby-source-contentful/src/extend-node-type.js
@@ -14,10 +14,11 @@ const {
   GraphQLJSON,
   GraphQLList,
 } = require(`gatsby/graphql`)
-const qs = require(`qs`)
+const { fetchRemoteFile } = require(`gatsby-core-utils`)
+
 const { stripIndent } = require(`common-tags`)
+const qs = require(`qs`)
 
-const cacheImage = require(`./cache-image`)
 const downloadWithRetry = require(`./download-with-retry`).default
 const {
   ImageFormatType,
@@ -666,7 +667,7 @@ const fluidNodeType = ({ name, getTracedSVG, reporter }) => {
   }
 }
 
-exports.extendNodeType = ({ type, store, reporter }) => {
+exports.extendNodeType = ({ type, cache, reporter }) => {
   if (type.name !== `ContentfulAsset`) {
     return {}
   }
@@ -676,15 +677,21 @@ exports.extendNodeType = ({ type, store, reporter }) => {
 
     const { image, options } = args
     const {
-      file: { contentType },
+      file: { contentType, url: imgUrl, fileName: name },
     } = image
 
     if (contentType.indexOf(`image/`) !== 0) {
       return null
     }
 
-    const absolutePath = await cacheImage(store, image, options, reporter)
-    const extension = path.extname(absolutePath)
+    const url = createUrl(imgUrl, options)
+    const extension = path.extname(imgUrl)
+    const absolutePath = await fetchRemoteFile({
+      url,
+      name,
+      cache,
+      ext: extension,
+    })
 
     return traceSVG({
       file: {
@@ -712,7 +719,23 @@ exports.extendNodeType = ({ type, store, reporter }) => {
     }
 
     try {
-      const absolutePath = await cacheImage(store, image, options, reporter)
+      const {
+        file: { contentType, url: imgUrl, fileName: name },
+      } = image
+
+      if (contentType.indexOf(`image/`) !== 0) {
+        return null
+      }
+
+      const url = createUrl(imgUrl, options)
+      const extension = path.extname(imgUrl)
+
+      const absolutePath = await fetchRemoteFile({
+        url,
+        name,
+        cache,
+        ext: extension,
+      })
 
       if (!(`getDominantColor` in pluginSharp)) {
         console.error(
diff --git a/packages/gatsby-transformer-sqip/src/extend-node-type.js b/packages/gatsby-transformer-sqip/src/extend-node-type.js
index 217f408d27f98..e87806ee998b0 100644
--- a/packages/gatsby-transformer-sqip/src/extend-node-type.js
+++ b/packages/gatsby-transformer-sqip/src/extend-node-type.js
@@ -1,22 +1,23 @@
-const { resolve } = require(`path`)
-const md5File = require(`md5-file`)
-
-const {
-  DuotoneGradientType,
-  ImageCropFocusType,
-} = require(`gatsby-transformer-sharp/types`)
-const { queueImageResizing } = require(`gatsby-plugin-sharp`)
+const path = require(`path`)
 
 const Debug = require(`debug`)
 const fs = require(`fs-extra`)
+const sharp = require(`sharp`)
+const md5File = require(`md5-file`)
+
 const {
   GraphQLObjectType,
   GraphQLString,
   GraphQLInt,
   GraphQLBoolean,
 } = require(`gatsby/graphql`)
-const sharp = require(`sharp`)
-const { ensureDir } = require(`fs-extra`)
+const { queueImageResizing } = require(`gatsby-plugin-sharp`)
+const { fetchRemoteFile } = require(`gatsby-core-utils`)
+const { createUrl } = require(`gatsby-source-contentful/extend-node-type`)
+const {
+  DuotoneGradientType,
+  ImageCropFocusType,
+} = require(`gatsby-transformer-sharp/types`)
 
 const generateSqip = require(`./generate-sqip`)
 
@@ -44,11 +45,11 @@ module.exports = async args => {
 
 async function sqipSharp({ type, cache, getNodeAndSavePathDependency, store }) {
   const program = store.getState().program
-  const cacheDir = resolve(
+  const cacheDir = path.resolve(
     `${program.directory}/node_modules/.cache/gatsby-transformer-sqip/`
   )
 
-  await ensureDir(cacheDir)
+  await fs.ensureDir(cacheDir)
 
   return {
     sqip: {
@@ -140,14 +141,12 @@ async function sqipContentful({ type, cache, store }) {
     schemes: { ImageResizingBehavior, ImageCropFocusType },
   } = require(`gatsby-source-contentful`)
 
-  const cacheImage = require(`gatsby-source-contentful/cache-image`)
-
   const program = store.getState().program
-  const cacheDir = resolve(
+  const cacheDir = path.resolve(
     `${program.directory}/node_modules/.cache/gatsby-transformer-sqip/`
   )
 
-  await ensureDir(cacheDir)
+  await fs.ensureDir(cacheDir)
 
   return {
     sqip: {
@@ -192,7 +191,7 @@ async function sqipContentful({ type, cache, store }) {
       },
       async resolve(asset, fieldArgs, context) {
         const {
-          file: { contentType },
+          file: { contentType, url: imgUrl },
         } = asset
 
         if (!contentType.includes(`image/`)) {
@@ -223,7 +222,13 @@ async function sqipContentful({ type, cache, store }) {
           background,
         }
 
-        const absolutePath = await cacheImage(store, asset, options)
+        const url = createUrl(imgUrl, options)
+        const extension = path.extname(imgUrl)
+        const absolutePath = await fetchRemoteFile({
+          url,
+          cache,
+          ext: extension,
+        })
 
         const contentDigest = await md5File(absolutePath)