Aldi's New Partnership with Instacart Is a Total Game-Changer

Aldi's New Partnership with Instacart Is a Total Game-Changer

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Susmita Baral
Aug 15, 2017
(Image credit: SeanPavonePhoto/Shutterstock)

When it comes to delivering groceries to homes, Amazon has a firm understanding of what works and what doesn't. But the e-commerce company is going to face some fierce competition: Discount supermarket Aldi is slated to partner with Instacart, a grocery delivery company that allows consumers to shop for groceries online and then have them delivered to their door in a matter of one to two hours.

At its debut later this month, Aldi's partnership with Instacart will hit three markets: Los Angeles, Atlanta, and Dallas. There are no official announcements hinting at or confirming the delivery service's expansion to other regions of the country.

"Grocery shopping online is a relatively small part of the business but it is continuing to grow," Aldi's Vice President of Corporate Buying Scott Patton tells Reuters.

Aldi has 1,700 stores in the U.S. and is rapidly expanding within the nation. Earlier this summer, the European supermarket chain announced plans to open up 2,500 more establishments in the U.S. by the end of 2022. Should this come true, Aldi would be the third-largest chain in the nation.

The relationship between Amazon and Instacart goes beyond Aldi. Amazon, which has an in-house food delivery service called Amazon Fresh, recently purchased Whole Foods. Instacart partnered up with Whole Foods in 2014 — the two companies signed a five-year deal in 2016 making the startup an exclusive delivery provider for the high-end supermarket chain's perishable goods. Whole Foods reportedly accounts for 10 percent of the startup's business.

Instacart has been vocal of Amazon's tactics in the past.

"From the beginning, we've been committed to helping grocers compete online," an Instacart spokesperson said in a statement after the Whole Foods acquisition. "That's more important than ever given Amazon just declared war on every supermarket and corner store in America."

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