- Instacart is a delivery company that pairs customers with personal shoppers who deliver groceries to their homes.
- In 2016, it signed a five-year contract with Whole Foods to become its exclusive delivery partner. In 2017, Whole Foods was acquired by Amazon.
- Instacart now goes head-to-head with Amazon’s own Whole Foods delivery services, including Amazon Prime Now.
- We put the two competitors to the test.
Up until last year, there was only one way to have Whole Foods produce delivered to your door: via Instacart, a delivery company that pairs customers with personal shoppers who pick groceries in the store and deliver them directly to people’s homes.
This changed in June 2017, when Amazon announced that it would be buying Whole Foods for $13.7 billion. The announcement sent shockwaves through the market and put Instacart, which had exclusive rights to Whole Foods‘ delivery, in a sticky situation.
In a recent interview at Recode’s Code Commerce conference, Instacart CEO Apoorva Mehta explained how Whole Foods‘ CEO, John Mackey, called to personally inform him about the deal when it happened.
„It was probably a one-minute call,“ Mehta told Recode journalist Jason del Rey. „He wanted me to be one of the first people to know.“
In the months that followed, Instacart signed deals with several major US retailers including Sam’s Club, Costco, CVS, Albertsons, and Kroger, but industry experts were left wondering what would happen to the five-year contract that it had signed with Whole Foods in early 2016 and was only a year and a half in to.
„I don’t think anyone expected Amazon to buy Whole Foods, and the contract was obviously written with that expectation,“ Mehta said.
Whole Foods was Instacart’s first national delivery partnership. Instacart continues to deliver for Whole Foods along with Amazon’s own delivery services, but experts say it likely won’t be long before it’s muscled out.
I decided to put Amazon Prime Now and Instacart to the test to see how they compare. Find out what happened below:
I started by ordering from Instacart’s website. As this was the first time I used the service, I was asked to enter my zip code and set up an account.
It’s easy to register, and you can log in directly using a Google account without having to register any details, which is definitely a bonus.
Once I logged in, Instacart went straight to selling me a membership.
Instacart Express works in a similar way to an Amazon Prime membership. You pay $149 a year and are able to get free shipping when you spend over $35. However, given that the selection on Instacart is limited to groceries, pet supplies, and drug stores, you are getting far less for your money than with an Amazon Prime membership.
Prime costs $119 a year and includes free shipping of almost anything you can think of on Amazon.com as well as access to a ton of perks such as Prime Video and Prime Music.
When it comes to shopping for groceries alone, Instacart is the leading player. On here, you can shop from 300 different chains.
See the rest of the story at Business Insider
Source: Business insider