Walmart is leveraging an external partnership to compete against Amazon in fast shipping services.
Since Amazon’s acquisition of Whole Foods a few years ago, the company has established itself as a leader in the grocery retail industry by offering extensive delivery options. Whole Foods, utilizing Amazon’s delivery network, can provide same-day grocery delivery to its customers. To stay competitive with Amazon, any retail business would need to match this rapid delivery service. In a bid to position itself as a strong competitor to Amazon, Walmart has decided to collaborate with Instacart.
Today, Walmart has officially announced a partnership with Instacart to enable same-day grocery deliveries to its customers. While this partnership is not exclusive, as Instacart collaborates with various retailers nationwide for deliveries, access to Instacart’s network will undoubtedly strengthen Walmart’s competition with Amazon.
“Today, we welcomed Walmart to the Instacart marketplace for the first time in the U.S. Instacart now delivers from Walmart locations in three California markets—Los Angeles, San Francisco, and San Diego—as well as Tulsa, Oklahoma,” mentioned an Instacart spokesperson in a statement. “The new partnership allows customers to receive thousands of items ranging from groceries, alcohol, pantry staples, home decor, personal care, electronics, and more at competitive prices from Walmart stores within as little as an hour.”
The partnership between Walmart and Instacart will commence in a trial phase in the four mentioned markets. If proven successful, more Walmart stores might join the Instacart network. Particularly amid the ongoing pandemic which has dampened in-person shopping experiences, Instacart’s support could be a crucial boost for Walmart’s operations. Amazon’s CEO, Jeff Bezos, acknowledged that shopping services like Instacart could pose significant competition to Amazon’s services.
“In recent months, online orders for curbside pickup have surged over 200%, partially due to COVID-19 concerns,” Bezos stated. “We are also encountering new rivals such as Shopify and Instacart—companies enabling traditional brick-and-mortar stores to swiftly establish online stores and deliver products directly to customers through innovative methods—and an expanding array of omnichannel business strategies.”