Instacart Teams Up With Albertsons

Albertsons Companies, the grocery retailer, announced Tuesday (Nov. 28) that the company inked a deal with Instacart, the on-demand grocery delivery company.

In a press release, Albertsons said that once the platform is completed, Instacart customers can choose from Albertsons stores to receive grocery delivery. Under the terms of the agreement, Instacart’s delivery service will be available in more than 1,800 Albertsons locations around the country by the middle of next year.

“Instacart’s extensive delivery network combined with Albertsons Companies existing home delivery services and established, robust eCommerce offering creates a fantastic customer proposition,” said Shane Sampson, Albertsons Companies’ chief marketing and merchandising officer. “Customers can shop how, when and where they choose, with the convenient option of quick delivery straight to their doorsteps.”

This isn’t the first time Albertsons has embraced technology to drive more traffic to its stores and provide more convenience to customers. In the press release, Albertsons pointed to its acquisition of Plated, as well as its rollout of same-day delivery and Drive-up & Go. While terms of the deal with Plated weren’t disclosed, it does mark the first big strategic move since Amazon’s $13.7 billion deal to acquire Whole Foods Market earlier this year, which sent Kroger’s stock plummeting roughly 30 percent.

Grocery delivery startups attracted $1.4 billion in venture funding in 2016. And while just 23 percent of Americans buy groceries online, that share is expected to more than triple in under 10 years.

“Families across the nation trust and rely on Albertsons Companies’ stores for their fresh groceries and everyday essentials,” said Apoorva Mehta, founder and CEO of Instacart. “We couldn’t be more excited to work with the company’s legendary brands from coast-to-coast to offer customers a new convenient, time-saving option for shopping at their neighborhood store.”