Article Title: The Amazon-Whole Foods Deal Is Turning Out to Be Good for Delivery Startups
Author of Article: Craig Giammona
Date of article: December 12, 2017
This Bloomberg article looks at two food delivery startup companies: Shipt, Inc. and Instacart, Inc. With Amazon’s purchase of Whole Foods, the outlooks for these companies and traditional grocery stores looked bleak. However, to compete against Amazon in the food delivery market, these two startups are partnering with traditional supermarkets to offer same-day delivery.
Shipt is planning to exceed revenues of $1 billion in 2018. Their focus is the Southeast and Midwest, and partners include Kroger, Publix Super Markets and H-E-B Grocery Co.
Instacart has also partnered with Kroger, and with Albertsons.
Both delivery startups have a similar approach. Their retail partners make specific items available online. They then send in a personal shopper to select and deliver the items. Instacart offers a per-delivery fee, or unlimited delivery membership. Shipt has a $99 annual membership plan with unlimited deliveries.
1. Why are retailers partnering with firms like Shipt and Instacart versus developing their own systems?
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