December 14, 2018

With Whole Foods in Amazon’s basket, Instacart has finally ditched its old partner

Instacart announced that it will end its relationship with Whole Foods after spending the last year and a half gathering partners who are not owned by Amazon.

After sharing shoppers for 4 years, Instacart is finally taking Whole Foods out if its cart by terminating its partnership with the all-natural grocer. After Amazon purchased Whole Foods last year, it was only a matter of time until Whole Foods would become exclusive. 

But, in the year since Amazon put a ring on its supermarket soul mate, Instacart has shopped for new partners.

Turning the ’Cart around

Whole Foods signed a 5-year contract with Instacart in 2016, which should have preserved the partnership through 2021. 

But after Amazon’s $13.7B acquisition, it became clear Instacart was no longer Whole Foods’ #1. 

So Instacart, not happy being anyone’s side-service, started taking matters into its own carts.

A strong, independent service

In the last 18 months, Instacart added several grocery giants to its cart (Kroger, Sam’s Club, Walmart Canada) and raised $871m in new funding to ensure it can roll on its own 4 wheels.

Now, since Whole Foods stores account for only 76 of Instacart’s 15k grocery locations, Instacart’s revenue is expected to drop by less than 5%.  

Instacart, which is valued at $7.6B, failed to announce the exact day that it would stop taking orders from Whole Foods. So, if you’re reading this — stock up on your Probiotic Kale-Turmeric Smoothies while you can!!!

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