Walmart is teaming up with Instacart in an effort to compete with Amazon‘s Whole Foods.
In a statement, Instacart shared the exciting news: “Today, we welcome Walmart to the Instacart marketplace for the first time in the U.S. Instacart now delivers from Walmart locations in three California markets – Los Angeles, San Francisco, and San Diego – as well as Tulsa, Oklahoma.”
Keep reading for more details.
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Throughout the pandemic, many stores have seen an increase in demand for same-day delivery, especially grocery delivery.
With that in mind, Walmart's decision to partner with Instacart is definitely strategic. According to Business Insider, "Walmart is partnering with Instacart to provide same-day delivery services in a handful of US markets, in efforts to take on chief rival Amazon's Whole Foods business."
Speaking to Business Insider, an Instacart spokesperson explained the pros of the partnership especially for those who want delivery on a budget: "The new partnership brings thousands of items — from groceries, alcohol, and pantry staples to home decor and improvement, personal care, electronics, and more— at everyday low prices from Walmart stores to customers' doors in as fast as an hour."
By partnering with Instacart, Walmart has a better chance of competing against Amazon.
The Verge explains, "The addition of Walmart — Amazon’s primary rival that has been working to establish its own grocery delivery network — should help both the retailer and Instacart fend off competition from Amazon-owned Whole Foods and the e-commerce giant’s Amazon Fresh and Prime Pantry services."
Instacart has existing partnerships with other retailers as well, including Aldi, Costco, and Target. Plus, according to Business Insider, Whole Foods was once a partner of Instacart before being bought by Amazon in 2018.
