Dive Brief:
- Instacart reported the company's 15-city partnership with Whole Foods has produced an average of $1.5 million in weekly sales for the health food retailer through Instacart orders.
- The company has also now added Miami to its growing list of cities the grocery delivery service operates. In Miami, users can order from Whole Foods Market, Costco, Winn-Dixie, BJ’s Wholesale Club, and Petco stores.
- Membership-based stores, such as Costco or BJ's, won't require membership for Instacart shopping, though extra charges could apply.
Dive Insight:
These Whole Foods numbers support the belief that grocery delivery services are becoming a new way for consumers to shop. One report earlier this month suggested that traditional retailers are seeing a decline in their market share, due in part to the growth of alternative retail options like grocery and home meal delivery.
Memberships, such as for stores like Costco, are proving to be a viable business model for these delivery services to keep their per-delivery fees down, particularly in urban areas. Earlier this week, alcohol delivery service company Drizly also announced Series A funding to help it expand to other markets.