As Amazon continues taking a bigger piece of the grocery delivery market and newcomers like Gopuff crowd an already-congested landscape, Instacart is planning to launch micro-fulfillment warehouses to gain a competitive edge, according to a press release on Thursday (March 24).
The decision also supports Instacart’s post-pandemic strategy to pivot from a gig economy food delivery platform catering to consumers to one that provides solutions to retailers. Carrot Warehouses, Carrots Ads, and Carrot Insights are some of the central services that will be extended to merchants.
“The grocery industry is undergoing a digital transformation where customers expect a seamless experience across many channels, but behind the scenes, it’s taking an incredible amount of work and investment for retailers to deliver these new services,” said Fidji Simo, CEO of Instacart.
“We’re looking to change that with Instacart Platform. We started as the eCommerce and fulfillment partner of choice for grocers, and we’ve been building on that foundation to broaden and deepen our capabilities in order to help retailers innovate faster than ever on their own properties,” Simo said.
Read more: Instacart Diversifies to Hold Onto Its Customers Amid Increasing eGrocery Competition
Instacart’s first deal is with the Florida grocery chain Publix, with initial launch plans in Miami and Atlanta. The company is also in talks with ALDI, Schnuck Markets Inc., Good Food Holdings, Plum Market, Key Food, Food Bazaar and more.
The company’s new Instacart Platform will offer bundled services that will include warehouses, advertising, data analytics, and in-store technology like smart shopping trolleys. Its warehouses with Publix are planned to be a combination of standalone structures attached to the retailer’s stores.
Related: Smart Carts Bring Data Analytics Into Grocery Aisles
“Across our five iconic food retailing brands, we’re operating in a dynamic industry where we need to meet consumer expectations, both online and offline,” said Neil Stern, CEO of Good Food Holdings.
“Our focus is to leverage the industry’s best technology and partnerships to future-proof our omnichannel retail business. We’re proud to be first-movers with Instacart Platform’s new Carrot Ads feature. We’ll now be able to take advantage of Instacart’s robust ad-tech and talent to help us unlock additional digital revenue streams for our eCommerce sites.”
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