Walmart is partnering with Instacart to offer same-day delivery starting in a few U.S. markets. Walmart is the latest major grocery chain to team up with Instacart in its fight against Amazon and Whole Foods. The partnership is currently in a pilot phase in four markets across California and Oklahoma.
Walmart’s partnership comes at a key time. Consumers are relying on grocery delivery demand at an unprecedented rate due to the Covid-19 pandemic, and some analysts believe customers will continue to shop online even as things go back to normal.
Instacart users will be able to order groceries and other goods offered by Walmart. Instacart already partners with Aldi, Target, Costco, Albertsons, Krogers, Walmart’s Sam’s Club, along with smaller grocers and drug stores.
By offering quick delivery, big chain grocers have a stronger position against Amazon, which offers grocery delivery services Amazon Fresh and Amazon Prime Now from its own warehouses and Whole Foods stores.
“In recent months, curbside pickup of online orders has increased over 200%, in part due to COVID-19 concerns,” Bezos said. “We also face new competition from the likes of Shopify and Instacart—companies that enable traditionally physical stores to put up a full online store almost instantaneously and to deliver products directly to customers in new and innovative ways—and a growing list of omnichannel business models. “
This news is developing. Please check back for updates.
CNBC’s Deirdre Bolton contributed to this story.