While in early 2020 Instacart was clearly the go-to for consumers looking to order online from their favorite grocer for curbside pickup or delivery, today the landscape has changed.
Major restaurant aggregators, including DoorDash, Uber Eats and Grubhub, are rapidly expanding their grocery offerings, and grocers have built their fulfillment capabilities in-house. Now, Instacart is looking to deliver more value from its network of pickers and drivers, branching out beyond the grocery category.
Over the past week, for example, the company partnered with home improvement retailer Lowe’s for same-day delivery and partnered with Delta Air Lines to offer SkyMiles as rewards for Instacart purchases.
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Earlier this year, Instacart launched its convenience food hub, allowing consumers to easily browse hot food options from grocers, providing a cheaper alternative to ordering convenience food from restaurant aggregators.
See more : Instacart aims to buy DoorDash with meal delivery launch
Last year, the company launched on-demand delivery of arts and crafts supplies, discount products, and storage and organization items.
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These efforts come as one-time restaurant aggregators become aggressive in their grocery store expansions. In the past two weeks alone, for example, DoorDash launched 30-minute delivery in partnership with major grocery company Albertsons Companies, and Grubhub announced a partnership with on-demand grocery delivery startup Buyk to offer Buyk delivery in 15 minutes via its marketplace.
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Grubhub will launch 15-minute grocery delivery with Buyk
Instacart is also facing increased competition not only from other marketplace apps but also from merchants on its own platform as they increasingly look for other ways to offer delivery and pickup. .
“If you were to ask the high-volume e-commerce retailers today in our franchise what worries them the most, the #1 thing they worry about in e-commerce… [is] the fact that they may be creating a business model for someone else on the backs of their own buyers,” John RossPresident and CEO of the Alliance of Independent Grocers (IGA), told PYMNTS in an interview with PYMNTS TV in December. “Many of them have accelerated e-commerce as the quickest and easiest way to get there, but now, as they reflect on [creating] a more mature role model on how they’re going to move forward, this question is really, really, really important.
Read more: Supermarkets are rethinking physical and digital aisles for the connected future of grocery shopping
According to data from the PYMNTS study “Decoding Customer Affinity: The Customer Loyalty to Merchants Survey 2022”, carried out in collaboration with Toshiba Global Business Solutions.
Get the report: The 2022 Merchant Customer Loyalty Survey
The report, which featured results from a survey of a balanced panel of more than 2,000 U.S. consumers, also found that 23% of shoppers said the ability to shop online would improve their loyalty to their grocers, and 20% said the same. of product delivery.