Walmart Partners with Instacart for Fast Delivery

Credit: Instacart

Walmart is bringing in outside help to battle Amazon’s same-day shipping.

Since its acquisition of Whole Foods a few years ago, Amazon has become a top-runner in the grocery retail sector thanks to its vast delivery network. Through Amazon’s infrastructure, Whole Foods can offer same-day delivery of groceries to customers. Any retail business that wants to compete with Amazon on this front would need to be able to match this fast turnaround. This is why Walmart, continuing to build itself as a rival to Amazon, has scouted the aid of Instacart.

Walmart announced today that it would be formally partnering with Instacart in order to provide same-day delivery of groceries to customers. While this won’t be an exclusive partnership, as Instacart has teamed up with retailers all over the country for deliveries, having access to Instacart’s network will definitely be a boon in Walmart’s competition with Amazon.

“Today, we welcomed 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,” an Instacart spokesperson said in a statement. “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.”

Credit: Patrick T. Fallon/Bloomberg via Getty Images

Walmart and Instacart’s partnership will begin in a pilot phase in the aforementioned four markets. Presumably, should this partnership prove profitable, more Walmart locations will open up to Instacart shopping. With the pandemic tempering the desire to shop in person, Instacart’s aid could provide a vital boost to Walmart’s business. Jeff Bezos, CEO of Amazon, recently admitted that shopping services like Instacart could become genuine rivals to Amazon’s services.

“In recent months, curbside pickup of online orders has increased over 200%, in part due to COVID-19 concerns,” Bezos said. “We also face new competition from the likes of Shopify and Instacart — companies that enable traditionally physical stores to put up a full online store almost instantaneously and to deliver products directly to customers in new and innovative ways — and a growing list of omnichannel business models.”

Written by  
4 years ago
Article Tags:
· · · · ·