Instacart, the grocery delivery startup that works with grocers like Whole Foods and Publix, has years of experience trying to prove out its model in dense, urban areas. It’s latest partnership will be another litmus test on whether it can make it work long-term in the suburbs, too.
The San Francisco-based startup has inked a deal to deliver groceries on behalf of Wegmans, the family-run east coast grocery chain that has just 92 stores but $8.4 billion in annual sales and an outsized cult following.
The partnership will start in the Washington, D.C., suburbs of northern Virginia and Maryland and expand to other markets including the Boston area in the near future. Within a few months, the partnership will cover a few dozen of Wegmans’ stores, an Instacart exec said.
“Wegmans is known to be one of the highest-quality grocers and, as such, they typically do everything in house,” said Nilam Ganenthiran, Instacart’s chief business officer. “So we are very grateful and proud.”
While a deal like this can boost Instacart’s sales and credibility, it also puts pressure on the five-year-old company to perform in less densely populated markets that are harder to turn profitable. A big reason why Instacart raised $400 […]