Saturday, September 18

Walmart is teaming up with Instacart to take another shot at delivering groceries in New York City

  • Walmart is teaming up with Instacart to deliver groceries to parts of New York City.
  • Customers in Queens, Brooklyn, and the Bronx will be able to sign up for this service.
  • It pits Walmart against Amazon, which already offers speedy grocery delivery services in New York.

Walmart said Tuesday it is partnering with Instacart to deliver groceries to parts of New York City, The Wall Street Journal first reported.

Customers in areas of Brooklyn, Queens, and the Bronx will be able to have groceries collected by Instacart drivers from stores outside the city and delivered to their homes. Instacart is a same-day delivery service that pairs users with gig workers who shop for and deliver their orders.

Walmart previously offered grocery delivery in New York through its service, which was shut down in 2020. Aside from this, the retail giant has made few moves into the New York City market and does not currently have stores there.

The move will allow Walmart to better compete with Amazon, which offers its Amazon Fresh delivery services for grocery in New York and has been ramping up speedy delivery options in urban areas.

Read more: Walmart unleashes a crucial new weapon to grab advertising budget from Amazon, but it’s still lagging behind

“It’s about reaching more customers,” a Walmart spokesperson told The Journal, who said the retailer is using Instacart’s services in areas where it lacks stores.

Walmart didn’t immediately respond to a request for comment from Insider.

This isn’t the first time Walmart has teamed up with Instacart. The two companies partnered in 2019 to offer grocery delivery services to 200 Walmart stores across Canada. In 2020, it extended these same-day delivery options to parts of the US, including California and Oklahoma.

At the time, Moody’s analyst Charlie O’Shea described the partnership as Walmart’s latest “salvo in its delivery arms race with Amazon.”

“Walmart will continue to leverage its 5,300-plus physical locations in the US, which is a compelling competitive advantage as it provides consumers with a same-day pick-up option, with same-day delivery augmenting this capability, creating a very powerful one -two punch,” he said, Insider’s Áine Cain reported in 2020.

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