Things have become a bit more interesting in the grocery delivery landscape in the U.S., as Sam’s Club, which is a division of Walmart, has agreed to partner with Instacart in a deal that offers same-day grocery delivery. It adds one more major grocery chain to the list for Instacart, as it prepares for competition against Amazon and its grocery store chain Whole Foods.
In a press release made together, Sam’s Club and Instacart said they would roll their service out to start in three markets: Dallas-Ft. Worth, Austin and St. Louis Missouri.
This new partnership brings up questions over the future of the grocery delivery business of Walmart and if it might partner one day with Instacart.
More and more Walmart is competing with Amazon related to ecommerce as well as grocery industry and had built up its delivery system that has partners such as Google and Uber.
However, investors hurt Walmart after the most recent quarter showed ecommerce sales had slowed, as shares took their biggest dive for one day since 1988 following the news.
Through a note to its clients following the disappointing earnings report, Credit Suisse said that the huge retailer would be able to redeem itself via a great opportunity it has in selling online groceries.
As the delivery business is tested by Sam’s Club with Instacart, investors will likely be looking at whether the startup in grocery delivery would help Walmart increase its online sales, through giving access to several markets all at one time.
A spokesperson for Sam’s Club in the company’s press release says that Instacart has become a trusted partner for many customers and the company is thrilled that it will be launching a delivery service with them.
Instacart is gaining the confidence of major grocery chains as they answer to threats from Amazon and Whole Foods and to retail behemoths such as Walmart that are pushing their way into the delivery of groceries.
Following the purchase by Amazon of Whole Foods last year, Instacart expanded its partnerships with CVS and Costco and signed new contracts with Krogers and Albertsons.
With the deal signed with Sam’s Club, Instacart is now partnering with the top seven North American grocers and pits the majority of the industry against Amazon, the newcomer on the block but a behemoth in itself.