Instacart under pressure as Kroger-Ocado gains momentum in the U.S.
Category: #retail  By Ojaswita Kutepatil  Date: 2018-05-20
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Instacart under pressure as Kroger-Ocado gains momentum in the U.S.

Instacart, a renowned U.S. grocery delivery company has allegedly suffered a setback because of the recent announcement of a strategic alliance between supermarket giant Kroger & the British online grocery service Ocado Group. Reportedly, the collaboration between the two puts more pressure on Instacart that picks & delivers groceries for number of other retailers including Albertsons & Sprouts Farmers Market Inc., Walmart’s Sam’s Club, and Costco Wholesale Corp.

Sources reveal that the collaboration move with Ocado has significantly upped Kroger’s ante and has further positioned it in a long-term battle against Amazon & Walmart. The U.S. grocery industry for the record, is profoundly dominated by Walmart Inc., Kroger, however has been in turmoil since Amazon’s USD 13.7 billion deal for Whole Foods has sent grocery chains scrambling to compete with the e-commerce behemoth on home delivery.

According to reports, Kroger is one of Instacart’s major U.S. customers and currently delivers groceries for its stores in 45 U.S. markets, including Mariano’s in Chicago, King Soopers in Denver, and Ralphs in Southern California.

In a company statement, one of Kroger’s spokesperson revealed that its relationship with Instacart remains unaffected by the Ocado deal as it is viewed as nothing but “complimentary.” Rodney McMullen, Chief Executive of Kroger further said that it usually takes around two years to get Ocado’s roboticized warehouse services to be ready to fill orders and deliver items.

Meanwhile, GlobalData Retail’s managing director Neil Saunders claimed that the Kroger & Ocado partnership will give the former the confidence to grocery delivery in-house, and that could prove disastrous for Instacart.

If industry experts are to be believed, this move will emerge to be another game changer in the grocery e-commerce war and could force a business model alteration or strategic shift at Instacart, which has raised nearly a billion U.S. dollars from its investors.



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Ojaswita Kutepatil

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Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, presently develops content for Market Size Forecasters, Algosonline, and other similar platforms. Having had a prior experience in Business Development and Technical Engineering, she now pens down articles pe...

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