Amazon is getting ready to face its rival Instacart by providing a similar service.
Amazon might be rolling out its U.K. version of Instacart named Amazon Fresh Marketplace in Europe and the United States in 2022.
As a logistics powerhouse, Amazon plans to use its shipping abilities with grocery stores throughout the U.S. and start providing delivery services, like the current offerings of the privately-held Instacart company.
While Instacart has been the top player in the grocery delivery sector, Amazon has been expanding its food offerings which includes buying Whole Foods for $13.7 billion, adding Amazon Fresh, which is its current food delivery company, and Amazon Go, its physical stores that don’t have any cashiers and are contactless.
Amazon adds Partners
In the U.K., stores such as Morrisons and Co-op have partnered with the Amazon Fresh Marketplace delivery service and Amazon Prime members can now receive orders on the same day.
Amazon spokesperson Jessica Canfield says that partnerships with additional grocery stores will provide customers with more options to choose from and the choice to shop online, but she didn’t provide any comments on a delivery service in the United States.
Since the beginning of the Covid-19 pandemic, shoppers have turned to curbside pickup or grocery delivery in the U.S.
About 69 million households bought groceries online in Nov., which is a 15% increase from last year.
Home deliveries have increased by 6% from last month while curbside pickup and in-store shopping have risen by 29% when compared to the year prior.
Instacart has been increasing its offerings by working with grocery stores to build small warehouses to fulfill its orders. Instacart has also released deals where consumers could receive deliveries in less than 30 minutes by partnering with Kroger and Publix.
Will Grocery Chains be willing to Partner with Amazon?
While Amazon has made some partnerships overseas for its Instacart-like service, it still remains to be seen whether American grocery chains will be willing to partner with Amazon.
Amazon competes directly with other grocery stores and delivers through its growing Amazon Fresh grocery stores and its Whole Foods brand.
“These stores have been strategically located to help raise awareness with a lot of customers and let them know that Amazon Fresh currently has a physical presence within the market place that meets a wide range of customer needs,” according to Bill Bishop.
“This physical presence provides customers with 24/7 visibility and confidence and lets them know when they are shopping online they are working with an actual grocery store, and not just an unknown online provider.”
Amazon’s food delivery efforts, along with Fresh and Whole Foods make it a rival with many of the grocery chains it would like to partner with.
Author: Blake Ambrose