Instacart Plans To Lay Off Some Of Its Shoppers

Select part-time Instacart workers who are in-store shoppers are having their positions cut due to at least two of the company’s partners — Sprouts and ALDI — choosing to have their own staffers take the place of Instacart’s in-store shoppers as needed, CNN reported.

“At Instacart, we work closely with more than 400 retail partners to create a seamless grocery delivery and pickup experience for customers across North America,” Instacart said in a statement to PYMNTS. “As part of this effort, we regularly explore new solutions with our partners to find the best model for them and their customers.”

The company said that staffers at some of its partner stores will harness its technology to fulfill Instacart Pickup orders for shoppers.

“As a result, Instacart in-store shoppers will no longer be picking at these stores, and we will be winding down our in-store operations at ALDI and Sprouts locations,” Instacart also noted in the statement to PYMNTS. “We’ve offered transfers to impacted in-store shoppers to nearby retailer locations when possible, and we’re also working closely with our retail partners to identify potential hiring opportunities based on open roles.”

The company said customers can keep making pickup and delivery orders from Sprouts and ALDI stores throughout the country.

In March, news surfaced that Instacart would add 300,000 additional full-service shoppers to support cities across the nation.

Apoorva Mehta, founder and CEO of Instacart, said at the time, “As more people look for immediate, flexible earnings opportunities during this time, we hope that Instacart can be an additional source of income for those looking to earn while also delivering for the communities in which they live.”

And, in June, Instacart’s valuation reached $13.7 billion following new funding. The General Catalyst and DST Global-led round brought in $225 million. Existing investor D1 Capital Partners also contributed.