In 30 Minutes Or Less, You Can Get Your Groceries Kroger and Instacart both claim to be capable of doing so.
Through a new service named Kroger Delivery Now, Kroger (KR) is extending its collaboration with Instacart to deliver groceries to North American households in as little as 30 minutes.
The service expands Kroger’s partnership with Instacart, which began in 2017. The companies advertised a two-hour delivery service at the time. In 2019, the partnership extended to offer alcohol delivery from roughly 1,500 Kroger locations across 15 states.
Now, Kroger and Instacart will deliver 25,000 different items in 30 minutes from Kroger’s 2,700 stores to 50 million households.
Instacart CEO Fidji Simo told the Wall Street Journal, “The consumer’s need for speed is real and here to stay.” Customers who place 30-minute orders will be given precedence, according to Instacart.
According to Simo, up to 20% of Instacart consumers pay more for speedier delivery of their items, while delays are possible.
The Kroger Delivery Now Service capitalizes on consumer demand for supermarket delivery during the epidemic as consumers adapted to new contactless shopping methods. According to the Journal, grocery delivery sales spiked during the epidemic but have subsequently tapered out, still above pre-pandemic levels.
In a statement, Kroger Chairman and CEO Rodney McMullen said, “Kroger Delivery Now offers a differentiated solution in the e-commerce business, not simply the grocery sector.”
“Our new service gives customers another method to shop with us while also emphasizing the significance of convenience and speed. This service, which is an expansion of our thriving e-commerce model, reaches up to 50 million households and demonstrates strategic interplay among our assets, expansive store network, supply chain, dedicated fulfillment centers and fleet, joined by Instacart’s unrivaled fulfillment model and last-mile technology to provide our customers with anything, anytime, anywhere without a wait.
According to the Journal, Kroger’s Kroger Delivery Now service will have a $10 minimum order and a $2.99 delivery cost. Its normal grocery service has a $35 minimum purchase requirement and a delivery cost of $3.99. With an annual membership, Instacart subscribers would not have to pay a delivery fee.
Kroger’s stock was trading at $42.20 at 11:39 a.m. ET on Tuesday, down 68 cents, or 1.58 percent.