Instacart Gets Closer to Insta-Delivery

Instacart is building micro-fulfillment warehouses in Atlanta and Miami to provide 15-minute local deliveries to customers of Publix Supermarket.

In addition, Instacart will provide Publix with key metrics such as order volume, out-of-stocks and buying trends to help the retailer better understand its ecommerce business and performance.

Video Spotlight:  

• Instacart looks to offer 15 minute delivery (Mar 24, 2022, 23 ABC News | KERO)

This post is based on the Retail Wire article, Instacart is moving into the ultrafast lane, by George Anderson, March 25, 2022; the Material Handling & Logistics News post, Why Logistics Technology Matters Now More than Ever, by Gabe Grifoni, May 2, 2022; and the YouTube video in the Spotlight. Image source: beton studio/Shutterstock

Discussion Questions:

1.  What competitive advantages does Publix Supermarket gain in partnering with Instacart?

Guidance: By outsourcing its delivery services to Instacart, Publix gains such competitive advantages as fast delivery services, quick response, flexibility, and inventory management.  It has first-mover advantage in providing its customers with grocery deliveries in as little as 15 minutes.

In addition, Publix will have real-time visibility into its operations from data analytics provided by Instacart.  As a result, Publix will be more responsive and flexible in reacting to changes of order volume by effectively managing its inventory to reduce stockout while meeting buying trends.

2. What factors does Publix Supermarket consider in outsourcing its delivery services to Instacart?

Guidance: The factors include available capacity, expertise, quality, and nature of demand.

Publix does not have the capacity or expertise to provide fast delivery services to its customers.  Therefore, it makes sense for Publix to outsource its delivery services to Instacart. The company plans to build micro-fulfillment warehouses to offer 15-minute delivery services to Publix’s customers.