Albertsons, the polity’s second-largest grocer, announced a deal on Tuesday with Instacart, unfolding the grocery delivery start-up’s service to more than 1,800 U.S. collects by mid-2018.
As Amazon’s surprising acquisition of Whole Foods threatens to interfere with an entire industry, American grocers are increasingly looking for ways to propel their e-commerce offerings — and are increasingly finding a partner in Instacart.
Reasonable three months after the Amazon/Whole Foods deal, Instacart has now signed up the top five U.S. grocers: Kroger, Albertsons, Ahold, Publix, and H-E-B. Instacart also amplified its partnership with Costco, and earlier this month announced a partnership with Canada’s largest grocer, Loblaw, its commencement international foray.
For traditional grocers, partnering with Instacart is a way to encouragement their e-commerce platforms and push deeper into the grocery execution business as Amazon applies its technology and logistics network to Whole Foods.
With Instacart, Albertsons is facsimile down on grocery delivery. Earlier this year, it began muster out same-day delivery for its Safeway and Albertsons brands. In September, it acquired the meal-kit performers Plated.
The growing number of partnerships Instacart signed in recent months is a way for the 5-year-old start-up to look beyond 2021, when its debarring deal with Whole Foods expires and, presumably, Amazon studies over.
Also as part of that deal, Whole Foods inaugurated an undisclosed amount in Instacart. It’s a twist that becomes more complex as Instacart motions up more Whole Foods competitors.
In the new grocery landscape, a shakeup is brewing and Instacart is increasingly putting itself in the centre.
Instacart was last valued at $3.4 billion and it’s backed by some of the biggest big names in venture capital including Andreessen Horowitz, Sequoia and Kleiner Perkins.
Instacart abort and CEO Apoorva Mehta will appear on “Power Lunch” in the 2 p.m. ET hour in an debarring interview with CNBC’s Deirdre Bosa.