As restaurant and grocery aggregators increasingly compete for the same opportunities, Instacart is challenging its competitors’ stranglehold on the virtual convenience store space.
On Thursday (June 23), the grocery delivery service announced the expansion of its partnership with Walmart in Canada to launch Walmart Now, a delivery-only virtual convenience store, bringing essentials to consumers’ doors in 30 minutes.
“Customers today expect convenience and fast delivery coupled with a wide selection. We know these components are fundamental as retailers seek to create the best online grocery experience for their customers,” Chris Rogers, vice president of retail at Instacart, said in a statement. “By collaborating with leading retailers like Walmart and providing purpose-built Instacart platform solutions for grocery, we’re making it easier for retailers to offer customers exactly what they need, when they need it. need.”
For this initiative, Walmart is using Instacart’s white-label e-commerce solution, Carrot Storefront, and the digital store is also available through Instacart’s own-brand app. Orders for this virtual offer go through existing Walmart Canada locations on the Instacart marketplace. The two companies’ partnership began in 2018 and includes more than 250 Walmart Canada stores.
In August 2020, DoorDash announced the creation of its DashMart virtual convenience stores, beginning with a rollout in eight U.S. cities. In February this year, Grubhub announced the launch of its digital convenience store Grubhub Goods.
Related News: Grubhub launches Grubhub products to challenge DashMart, Gopuff
“Diners expect more choices when they land on Grubhub, including convenience options, which we see as a natural extension of our market and a way to bring more value to the whole restaurant. Grubhub ecosystem,” said Kyle, Grubhub’s director of growth and vertical news. Goings said in a statement at the time.
Instacart has come into competition with DoorDash, Grubhub and Uber Eats, among other aggregators, in recent years as these restaurant delivery services expand into the grocery category, announcing partnerships with major supermarket chains. Instacart, in turn, launched its convenience food hub in January, offering on-demand convenience foods from grocery stores at lower prices than restaurant delivery rivals.
See also: Instacart aims to price DoorDash with meal delivery launch
According to data from the May edition of PYMNTS’ ConnectedEconomy study, The ConnectedEconomy™ Monthly Report: The Brick-and-Mortar Economy Goes Digital, the share of consumers using same-day aggregators for the delivery of snacks and ‘other foods is on the rise. The report, which is based on a survey of more than 2,600 US consumers about their digital habits, found that 34% of consumers used a same-day grocery delivery aggregator in April, compared to 30% in February. and March.
Read more: 19 million more consumers went online to bank, shop and pay bills in May 2022
Seeing this trend, Walmart has invested in its delivery business.
“We are making progress on the e-commerce experience as inventory improves, and the team continues to improve the app and site experience, accuracy and speed of delivery,” said the retailer’s chairman and chief executive, Doug McMillon, to analysts on a call in May to discuss Walmart’s first-quarter 2023 results.