Walmart is making it easier to get goods delivered through a new partnership with Instacart. Through the collaboration, customers can order groceries, household items, and alcohol to be delivered in under an hour.
Walmart is piloting its Instacart partnership in California and Oklahoma for customers to place orders online or through the Instacart app. Though the delivery option will be new to customers in the United States, Walmart and Instacart have a history of working together in Canada. The American launch arrives on the heels of increased grocery sales and demands for no-contact service during the Coronavirus pandemic. The rise in online grocery shopping has also furthered the appeal of same-day delivery, with other big brands such as Target and Amazon stepping up their delivery options to compete in the burgeoning market.
Walmart has utilized other third-party delivery services in the past, including Postmates and DoorDash. However, its new partnership with Instacart allows it to connect with an even wider market of consumers, as Instacart currently reaches 80% of North American households. Instacart’s rapid growth during the pandemic has made it an Amazon delivery rival, so teaming up with Walmart could further heat up the competition. Promoting same day delivery with Instacart also gives Walmart time to grow its grocery delivery options before the launch of its own subscription service, Walmart +, which includes an unlimited delivery feature, according to a Gartner report. The subscription service is touted as the big box brand’s answer to Amazon Prime, but has been delayed until later this year.
Walmart is the newest and largest retailer to partner with Instacart as the courier service continues to grow its delivery range around the country. By working with Instacart, Walmart can continue expanding its online grocery capabilities, bring more fulfillment options to customers, and stay competitive against Amazon.