Why Doesn’t Walmart Do Instacart?

Walmart, a multinational retail corporation, has been a household name for decades. Known for its vast product range and affordable prices, it’s a go-to for many shoppers. In recent years, the rise of online shopping and home delivery services has led many to wonder why Walmart doesn’t partner with Instacart, a leading grocery delivery and pick-up service. However, contrary to popular belief, Walmart does have a relationship with Instacart. Let’s dive deeper into the dynamics of this partnership.

Walmart and Instacart: A Partnership in Progress

Walmart and Instacart began their partnership in 2019, with Instacart delivering for about 200 Walmart stores in North America. This collaboration expanded in 2020 to compete against Amazon Prime and offer same-day delivery. The partnership allows customers to have thousands of items, including groceries, alcohol, pantry staples, home decor, personal care, and electronics, delivered to their doors in as fast as an hour. The collaboration has also extended to Canada since 2018, offering delivery from more than 250 Walmart stores.

Why Doesn’t Walmart Fully Embrace Instacart?

While the partnership exists, it’s not as extensive as some might think. There are several reasons why Walmart might limit its partnership with Instacart:

1. Control over Customer Experience: Walmart may want to maintain control over the customer experience to ensure consistent quality and service. A third-party service like Instacart could dilute Walmart’s brand and customer experience.
2. Competition with Walmart’s Own Delivery Services: Walmart has been investing in its own delivery services, such as Walmart Grocery and Walmart Spark. Partnering with Instacart could cannibalize Walmart’s efforts to grow its own delivery services.
3. Data Sharing Concerns: Walmart may be hesitant to share customer data with Instacart, as it could give Instacart insights into Walmart’s customer base and business strategies.
4. Instacart’s Partnership with Other Retailers: Instacart has partnerships with several other retailers, including Kroger, Target, Albertsons, and Aldi. Walmart may be reluctant to partner with a company that also works with its competitors.
5. Potential Conflicts of Interest: Instacart may have its own interests and priorities that could conflict with Walmart’s goals and strategies.
6. Geographic Limitations: Walmart may prefer to focus on expanding its delivery services in specific markets where it sees the most potential for growth, rather than partnering with Instacart across all markets.

Despite these potential concerns, Walmart and Instacart have previously tested a partnership in four markets – Los Angeles, San Francisco, San Diego, and Tulsa. This indicates that Walmart may be open to exploring partnerships with Instacart in specific situations or markets.

Walmart’s Own Delivery and Pickup Services vs. Instacart

Walmart’s own delivery and pickup services and Instacart’s offerings have some similarities and differences. Walmart Plus, for instance, offers free one-day delivery (without minimums) and free grocery delivery. It also comes with members-only gas pricing and provides better value in terms of pricing compared to Instacart. On the other hand, Instacart offers one-hour delivery windows between the hours of 9 a.m. and midnight, depending on your local coverage. It also gives you the widest selection of grocery stores, as it is a third-party grocery delivery service.

The Future of Walmart’s Delivery and Pickup Services

Walmart has several strategies and plans in place to enhance its delivery and pickup services. Some of these plans include reengineering its supply chain, expanding its InHome Delivery service, launching Walmart GoLocal, purchasing 4,500 Canoo electric delivery vehicles, growing the Spark Driver platform, partnering with Walmart Commerce Technologies and Salesforce, and increasing pickup and delivery capacity.

Other Grocery Delivery Services in the Area

In addition to Walmart and Instacart, there are several other grocery delivery services available, depending on your location. Some of the most popular options include Amazon Fresh, Shipt, FreshDirect, Hungryroot, Thrive Market, Boxed, Hive, Stop & Shop, and Dumpling.

In conclusion, while Walmart does have a partnership with Instacart, it’s not as extensive as one might think due to various strategic reasons. However, Walmart continues to invest in its own delivery and pickup services to provide its customers with convenient and efficient shopping options.