Jason Del Rey, writing for recode:
The writing has been on the wall since Amazon’s 2017 acquisition of Whole Foods. Now, reality is backing it up.
The five-year relationship between Whole Foods and grocery delivery service Instacart is winding down, the delivery startup announced on Thursday. Instacart will begin pulling the first group of 1,415 workers out of its 76 Whole Foods locations in February. The company expects to be able to offer 75 percent of those workers employment at another nearby retailer that partners with Instacart for deliveries.
The end of the relationship is expected to reduce Instacart’s revenue by less than five percent, including any impact on the membership business, according to a person familiar with the company’s finances. In addition to membership fees, Instacart also generates revenue through retailer commissions, online ads and delivery and service fees.
This certainly could have been seen coming regardless, with Amazon utilizing its own free delivery service for Amazon Prime Members. Instacart isn’t resting on its laurels though, by inking deals with Kroger, Aldi, Sam’s Club and more.
If you’re looking to maybe give Instacart a try, be sure to use our link and get $10 off your first order!