Instacart, the grocery delivery service that became a household name during the pandemic, has announced a partnership with Uber Eats to offer restaurant delivery to millions of customers. This collaboration has already sent Instacart shares to a new high and marks a strategic move to solidify its position in the competitive delivery market.
Instacart and Uber Eats: The New Partnership
In the coming weeks, Instacart customers across the U.S. will gain access to a wide selection of restaurants via Uber Eats. They can browse menus, place orders, and track their deliveries in real-time through the platform. Uber will power restaurant listings, handle order acceptance, and deliver food using its network of Uber Eats couriers.
The company’s Plus members will receive free restaurant delivery on orders over $35, while regular customers will pay standard Uber Eats delivery fees. An Uber spokesperson confirmed that Instacart users will pay the same restaurant prices as they would on Uber Eats, and couriers will be compensated similarly.
Boosting Market Share
The partnership between both companies adds to its recent efforts to strengthen its market position. Instacart’s other recent innovations include a new ChatGPT-powered search feature that provides personalized recommendations. This venture into the restaurant delivery business could enable the app to capture more market share amid increasing competition, particularly against DoorDash, which partnered with Best Buy last year to expand its service range.
Instacart call put her whole heart into this order. Big box with things stacked logically, handwritten notes warning me the box isn't structurally sound, and left it in a big cart I could easily wheel to my place
20 dollar tip pic.twitter.com/xfOYuBSVUn
— Chris P. Wicks 🔎🐜 (@CrispyWicks) May 7, 2024
Statements from Industry Leaders
Dara Khosrowshahi, Uber’s Chief Executive, emphasized that the partnership would simplify food delivery for customers, increase business for restaurants, and offer more earning opportunities for couriers. He stated that the goal is to make it easier “for people to go anywhere and get anything.”
Market Performance
Following the partnership announcement, Instacart’s stock rose by 1.88% to $37.24, the highest level since April 12, 2024. This surge reflects investor optimism about the collaboration’s potential to enhance the brand’s appeal and profitability.
What Lies Ahead
The financial details of the partnership haven’t been disclosed. However, industry experts will closely monitor how this alliance influences both companies’ sales and market shares. Instacart currently holds 25% of the grocery delivery market, behind Walmart’s dominant 51%. Will this collaboration help it close the gap?
