Instacart and Albertsons Companies Expand Partnership Nationwide Launching Pickup Services and Convenience Delivery in as Fast as 30 Minutes

Rhea-AI Summary

Instacart (CART) and Albertsons Companies (ACI) have expanded their partnership nationwide, launching pickup services and convenience delivery in as fast as 30 minutes. The expansion includes:

1. Pickup services available in over 2,000 Albertsons banner locations by the end of August.
2. Albertsons Rapid, a new 30-minute delivery service for convenience items.
3. Haggen Food & Pharmacy now available for same-day delivery on Instacart.

This expansion aims to provide customers with faster, more flexible shopping experiences across Albertsons' banner stores, including Safeway, Shaw's, ACME, Jewel-Osco, Randalls, and Vons. The partnership, which began in 2017, continues to strengthen Albertsons' e-commerce offerings.

Positive

• Expansion of partnership to include pickup services in over 2,000 Albertsons banner locations
• Launch of Albertsons Rapid for 30-minute convenience delivery
• Addition of Haggen Food & Pharmacy for same-day delivery on Instacart
• Increased customer convenience and shopping options
• Strengthening of e-commerce services for Albertsons Companies

Negative

• None.

Insights

Retail Technology Analyst

The expansion of Instacart's partnership with Albertsons Companies marks a significant development in the grocery retail technology landscape. This move demonstrates the growing importance of omnichannel strategies in the highly competitive grocery sector.

Key points to consider:

• The nationwide rollout of pickup services to over 2,000 Albertsons Cos. locations by August-end significantly enhances the company's omnichannel capabilities. This expansion could potentially drive increased customer engagement and loyalty.
• The introduction of Albertsons Rapid, offering delivery in as fast as 30 minutes, positions Albertsons Cos. to compete more effectively in the rapidly growing quick-commerce segment. This service, priced at $2.99 per order (free for Instacart+ members), could drive incremental sales and attract time-sensitive customers.
• The addition of Haggen Food & Pharmacy to Instacart's platform completes Albertsons Cos.' portfolio on the app, potentially increasing market share in Washington state.

From an investor's perspective, this partnership expansion could lead to increased transaction volumes for both Instacart (CART) and Albertsons Cos. (ACI). However, it's important to monitor the impact on profit margins, as last-mile delivery and pickup services often come with additional operational costs. The success of this expansion will likely depend on efficient execution and customer adoption rates.

E-commerce Strategy Consultant

This partnership expansion between Instacart and Albertsons Companies represents a strategic move in the evolving e-commerce grocery landscape. Let's break down the implications:

• Market Penetration: By extending pickup services to over 2,000 locations and launching Albertsons Rapid, the companies are significantly increasing their touchpoints with consumers. This could lead to higher market share and customer retention.
• Convenience Factor: The 30-minute delivery option and expanded pickup services cater to the growing demand for convenience in grocery shopping. This aligns with changing consumer behaviors, especially post-pandemic.
• Competitive Positioning: This move allows Albertsons Cos. to better compete with other major players like Walmart and Amazon in the online grocery space. For Instacart, it strengthens its position as a leading grocery technology partner.
• Revenue Streams: The $2.99 fee for Albertsons Rapid (free for Instacart+ members) could drive Instacart+ subscriptions while providing an additional revenue stream.

Investors should watch for metrics such as online sales growth, customer acquisition costs and the impact on in-store sales. While this expansion promises growth, it's important to monitor the balance between revenue increase and potential margin pressure from fulfillment costs.

Haggen Food & Pharmacy now available for same-day delivery from Instacart

SAN FRANCISCO and BOISE, Idaho, July 31, 2024 /PRNewswire/ -- Instacart (Nasdaq: CART), the leading grocery technology company in North America, and Albertsons Companies, Inc. (NYSE: ACI) today announce the launch of Instacart pickup services and Albertsons Rapid convenience delivery nationwide at banners* including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls and Vons. Additionally, Haggen Food & Pharmacy is now available on the Instacart App for same-day delivery. This program expansion provides Instacart customers with greater access to groceries and household essentials alongside the quality and fresh assortment they expect from Albertsons Cos. banner stores.

"Expanding our partnership with Albertsons Cos. showcases our commitment to serving as the leading technology partner in the grocery industry," said Ryan Hamburger, Vice President of Retail Partnerships at Instacart. "By introducing Albertsons Rapid, extending Instacart pickup services to more than 2,000 locations and adding Haggen for same-day delivery, we're ensuring that customers enjoy an even faster, more flexible and effortless shopping experience. Whether it's a full weekly shop or a last-minute need, we're delivering value and convenience right to your doorstep from your local Albertsons Cos. banner store."

"At Albertsons Cos., we place the customer at the center of everything we do, and we realize that shoppers today are increasingly busy with work, family and friend commitments," said Stephen Menaquale, SVP, eCommerce and Fulfillment for Albertsons Cos. "By expanding our partnership with Instacart to offer pickup services through the Instacart app, we are offering customers another channel to fulfill their shopping needs. Shoppers are likely driving by one of our stores on their way home from work or after their kid's soccer practice, and with Instacart pickup services, we are providing a convenient solution for grocery shopping that fits into their busy lives."

Albertsons Cos. first partnered with Instacart in 2017 and has continued to strengthen its partnership to offer a wide array of e-commerce services for its customers. Today's expansion includes:

• Pickup: Available now in hundreds of Albertsons Cos. banner stores, Instacart customers can place a pickup order through the Instacart App. By the end of August, the pickup service will be available in more than  2,000 banner locations* including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls and Vons. To shop Albertsons Cos. stores for pickup, customers can navigate to the retailer's storefront on the Instacart App and select pickup. At checkout, customers will select a pickup window and receive an in-app notification when their order is ready for pickup. Upon arriving at the store, customers can park in designated pickup parking spaces, and an Albertsons Cos. store associate will bring the completed order out to the customer's vehicle. Pickup services are free for all customers.

• Albertsons Rapid: Albertsons Rapid is a new feature in the Instacart-powered virtual convenience store allowing customers to have their order delivered in as little as 30 minutes. Available now in all Albertsons Cos. banner stores including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls and Vons, customers can purchase prepared foods, snacks, drinks, grocery staples, household essentials and more. Albertsons Rapid services are $2.99 per order and free for Instacart+ members. 

• Haggen Food & Pharmacy: Customers of Haggen Food & Pharmacy, which operates across Washington state, are now able to access the grocer's fresh food and pantry staples for same-day delivery. Haggen Food & Pharmacy marks the final Albertsons Cos. banner to partner with Instacart for same-day delivery. To place an order for Haggen Food & Pharmacy, Washington state customers can navigate to the Haggen storefront on the Instacart App and place their order for delivery.

To access an Albertsons Cos. banner store for same-day delivery and pickup, customers can select the banner storefront from the Instacart App or visit www.instacart.com/store/albertsons/storefront. To learn more about Instacart Platform, visit instacart.com/company/platform.

*Excluding United Supermarkets and Haggen Food & Pharmacy

About Instacart
Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com.

About Albertsons Companies
Albertsons Companies is a leading food and drug retailer in the United States. As of June 15, 2024, the Company operated 2,269 retail food and drug stores with 1,725 pharmacies, 403 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia under more than 20 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2023, along with the Albertsons Companies Foundation, the Company contributed more than $350 million in food and financial support, including more than $35 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat.

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SOURCE Instacart

FAQ

What new services are Instacart (CART) and Albertsons Companies (ACI) launching in their expanded partnership?

Instacart and Albertsons are launching pickup services in over 2,000 locations, Albertsons Rapid for 30-minute convenience delivery, and adding Haggen Food & Pharmacy for same-day delivery on the Instacart platform.

How many Albertsons banner locations will offer Instacart pickup services by the end of August 2024?

By the end of August 2024, Instacart pickup services will be available in more than 2,000 Albertsons banner locations, including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls, and Vons.

What is the delivery time and cost for Albertsons Rapid service through Instacart (CART)?

Albertsons Rapid offers delivery in as little as 30 minutes. The service costs $2.99 per order and is free for Instacart+ members.

When did Instacart (CART) and Albertsons Companies first partner?

Instacart and Albertsons Companies first partnered in 2017 and have continued to strengthen their partnership to offer a wide array of e-commerce services for customers.