As online originated grocery delivery becomes a bigger factor, a handful of players, including PostMates, UberEats and Instacart, have intensified their efforts to partner with leading grocery, specialty food and CPB companies and blunt the expected ambitions of Amazon/Whole Foods.
Speaking at the inaugural GroceryShop event today in Las Vegas, InstaCart CEO Apoorva Mehta said his San Francisco-based company is set to leverage the segment’s fast growth, which bullish prognosticators project will comprise 20 percent of the $1 trillion U.S./Canada grocery marketplace within five years.
Instacart can already provide deliveries to 70 percent of U.S. households in 4,000 cities, says Mehta. The company also has more than 300+ retail partners and delivery deals with 15,000 stores. Partners include many of the largest grocery chains, such as Publix, Kroger, HEB, Wegmans and Food Lion.
For such players, online delivery is “no longer an after thought” after Amazon’s purchase of Whole Foods, Mehta adds. The company also direct sells over 1,000 brands from the Top 35 CPB companies.
Delivery services may only represent the beginning of a “deepening” relatinship, he adds. As the customr base grows and AI and other technology matures, ancillary marketing areas such as sampling and couponing will eventually become strong pillars of the business as well.
“Sample items can be sent directly to customers,” says Mehta. “We are one of the largest couponing platforms in the world. Customers are saving millions of dollars a month. There are so many ways to inspire people that haven’t yet been developed.”