Dive Brief:
- Instacart announced Wednesday it is powering the websites for Harps Foods, Price Chopper and Canseco’s Market through Instacart Storefront. Customers will be able to shop the grocers through their websites or via the Instacart app for delivery in as fast as 30 minutes.
- DoorDash announced Monday it has linked with Rouses Markets to provide on-demand delivery for the Gulf Coast grocery chain.
- The partnerships come at a time when third-party e-commerce providers are placing heightened emphasis on linking with regional and independent retailers.
Dive Insight:
The new partnership tie-ups mark the latest endeavors by Instacart and DoorDash to expand their partner base with smaller retailers.
By using Instacart Storefront, the three grocers will have access to built-in catalog services for browsing, automated marketing campaigns and same-day delivery as well as no-rush and schedule-ahead delivery options powered by Instacart. Customers can also shop for pickup.
In announcing the three partnerships, Instacart is looking to position itself as an “easy and affordable” way for grocers to roll out e-commerce, the grocery technology company said in a blog post, noting that its partners can launch e-commerce in as fast as three weeks using Instacart.
With Instacart Storefront, grocers can give their associates access to an app that helps them pick and pack orders or they can use Instacart’s army of personal shoppers to fulfill online orders. Instacart did not note which labor options the three new grocery partners picked.
Instacart said that more than 600 grocers use Instacart Storefront to power their e-commerce websites. Hy-Vee recently expanded its partnership with Instacart, tapping the grocery technology company’s fulfillment capabilities for same-day delivery with its owned and operated websites and apps.
Meanwhile, DoorDash noted that Rouses Markets, which has 64 stores across the Gulf Coast, first introduced same-day delivery and app-based shopping to customers in 2018.
All Rouses Markets stores will be available on DashPass, DoorDash’s membership program offering free delivery.
DoorDash noted that it has over 150,000 non-restaurant stores available on its marketplace. Earlier this year, Ahold Delhaize USA announced its Food Lion, Giant Food, The Giant Company, Hannaford and Stop & Shop banners will arrive on DoorDash and also be available on DashPass.
The partnerships follow ongoing e-commerce struggles for regional grocers. Same-store online sales were down 13.5% for regional grocers during the third quarter of 2023 compared to the same period last year and only three of 25 surveyed banners reported positive year-over-year e-commerce sales growth during the quarter, according to data released at the end of last year by Brick Meets Click and sponsored by Mercatus.
Instacart’s first economic impact report, which was released at the end of 2023, noted that it has increased U.S. brick-and-mortar grocery partners’ revenue by nearly $8 billion since its launch and by $2.3 billion for grocers with fewer than 50 workers.
However, the company still heavily relies on major partners: Instacart recently disclosed in a 10-K filing with the Securities and Exchange Commission that its top three retailer partners accounted for about 43% of its gross transaction value in 2021, 2022 and 2023.
