Checking In On Instacart, The Uber For Groceries

In the last two weeks, Instacart has expanded its reach through deals with Kroger Co KR, SUPERVALU INC. SVU and Albertsons.

The proliferating partnerships may herald a simple expansion of Instacart’s grocery delivery service, or they may represent an effort to buffer business against enduring industry threats.

The firm’s longtime relationship with Whole Foods Market, including both a delivery partnership and investment by Whole Foods, has thus far withstood transitions under Amazon.com, Inc. AMZN. But Amazon continues to explore its own Fresh grocery service in dense metropolises and challenge Instacart’s market hold.

At the same time, Instacart faces disruption from innovators like Blue Apron Holdings Inc APRN.

The Market Of Errand Running

When the flurries fall or the baby’s fussing, the errands are put on hold. The milk goes unbought, the toiletries unstocked, the money unspent. Since 2012, Instacart has been working to bridge the homebound or time-constrained consumer with sales-dependent merchants to keep transactions flowing.

The concept is similar to that of Uber: clients use accounts to fill virtual shopping carts with items from local vendors, and Instacart’s shoppers hit the aisles and deliver products that same day.

The service works with Petco Animal Supplies, CVS Health Corp CVS and Costco Wholesale Corporation COST — and the list is growing.

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Photo courtesy of Instacart.