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Walmart tests same-day delivery with Instacart

The move bolsters Walmart's rivalry with Amazon.
Ann Smajstrla
August 11, 2020
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An Instacart shopper with groceries.
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Walmart and Instacart are partnering to offer same-day delivery in four markets, a move that strengthens both companies as competitors against Amazon and Whole Foods, CNBC and CNN both reported. The pilot program is now offered at Walmart stores in Los Angeles, San Francisco and San Diego, as well as Tulsa, Oklahoma.

Three years ago Instacart’s future was uncertain when Whole Foods was acquired by Amazon. Previously, Whole Foods had been one of Instacart’s biggest partners, CNN Business reported. Amazon offers grocery delivery through Amazon Fresh and Amazon Prime Now, delivering from its warehouses or Whole Foods.

But since the coronavirus pandemic hit the US, Instacart and other grocery delivery companies have been thriving. Instacart hired 300,000 shoppers in March and then another 250,000 shoppers in April to keep up with the demand. Today, Instacart operates at Aldi, Target, Costco, Albertsons, Kroger and Walmart's Sam's Club, among smaller stores. The company is worth $14 billion, according to CNN business.

“The new partnership brings thousands of items — from groceries, alcohol and pantry staples to home decor and improvement, personal care, electronics and more — at everyday low prices from Walmart stores to customers’ doors in as fast as an hour,” an Instacart spokesperson said in a statement.

The partnership makes both Walmart and Instacart stronger in opposition to Amazon and Whole Foods. In his July 29 testimony before the House Judiciary Committee, Amazon CEO Jeff Bezos cited Walmart and Instacart as major competitors. “Every day, Amazon competes against large, established players like Target, Costco, Kroger, and, of course, Walmart,” Bezos said. “... We also face new competition from the likes of Shopify and Instacart.”

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