Instacart has struck a formal partnership with Whole Foods Market, one which will allow for grocery delivery in less than an hour and allow customers to pick-up orders directly at selected stores. The in-store pick-up option will be piloted in Boston and Austin, but the companies intend to roll out the service in all of the 15 markets that it serves.
The companies also said that they will work together for speedier delivery of groceries, placing Instacart personal shoppers directly in the Whole Food stores. That will allow them to more quickly pick produce, milk, cheese and other groceries, delivering those items in less than an hour.
Instacart personal shoppers already had worked inside Whole Foods, but the new partnership should boost delivery speeds and add a new layer of convenience with the in-store pick-up option, the companies said.
“Whole Foods Market is our most requested shopping destination, and we’re happy to be working together to create a seamless, quick option for customers with busy lifestyles,” said Instacart CEO Apoorva Mehta, a former Amazon.com employee who founded the company in 2012. It raised $44 million in venture funding in June, part of a bid to take on Amazon Fresh in grocery delivery.
Unlike Amazon which employs its own drivers and operates its own centralized grocery warehouse, Instacart taps into the existing grocery store network. Grocery customers add items to a virtual cart, and then choose a delivery window. Then, Instacart Personal Shoppers confirm incoming orders on their smartphones, shop for the items, and then deliver orders to customers in the designated delivery timeframe.
Instacart charges $3.99 for a two hour delivery and $5.99 for one hour delivery, if more than $35 is spent on groceries. For orders under $35, the fee is $7.99 for two hours and $9.99 for one hour.
Instacart currently operates in Atlanta; Austin; Boston; Boulder; Chicago; Denver; Houston; Los Angeles; New York City; Philadelphia; Portland; San Francisco; San Jose; Seattle and Washington, DC. Instacart established service in Seattle in April. In addition to Whole Foods, it also offers delivery from Safeway and Costco.
Meanwhile, after years of testing in Seattle, Amazon has begun expanding its Amazon Fresh service, opening in San Francisco, San Diego and L.A. in the past 18 months.
