According to The Information, Amazon is working to become a major competitor in the grocery-delivery market. This holds true for both the U.S. and across Europe. To date, Instacart has been the dominant player in the U.S.
The Information piece reports that Amazon has launched a new business in the U.K., internally referred to as “Amazon Fresh Marketplace.” The business provides services very similar to Instacart. Prime customers can use the Amazon app or visit the Amazon website and order groceries from two main supermarkets. Amazon Flex drivers will then deliver those goods on the same day that a customer places an order.
Amazon’s goal is to expand this ordering and delivery program throughout Europe and into the U.S. by 2022. If successful, the company will emerge as a direct competitor to Instacart. The same holds true for other app-based grocery deliveries like DoorDash and Uber.
Instacart has already taken the stance that, if Amazon becomes competitive, it will take the necessary steps to show consumers that it is the better service-provider. Further, according to The Information, “Instacart has said it sees Amazon as a major threat to the grocers it partners with, because Amazon’s Whole Foods is a direct competitor.”
I’m sure many of us are not surprised by Amazon’s current endeavors and future plans. If they pan out, next year could witness a significant shake-up in the grocery delivery market. This is especially true considering that services like DoorDash and Uber’s Uber Eats are trying to perfect their own grocery delivery services. For example, the Information article reports that earlier this year, DoorDash announced a deal to deliver groceries for the Albertsons chain, and Uber recently acquired the grocery-delivery firm Cornershop.
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