It’s been a good week for Instacart. Now $600 million better capitalized, the grocery delivery service as of today (Oct. 18) announced that it is radically expanding its partnership with Walmart-owned Sam’s Club just in time for the holidays.
Sam’s Club and Instacart first began working together in February of this year to offer same-day grocery delivery at select Sam’s Clubs in the U.S. Today, that program is taking a massive leap forward: By the end of this month, Instacart-powered delivery will be on offer at 50 percent of Sam’s Club locations. All in, the expansion will see the service enter 1,000 new ZIP codes and over 100 new stores. Markets included in Instacart’s larger footprint will include New Jersey, Indianapolis and Houston, among others, according to the company. By November 2018, consumers will be able to make grocery orders at nearly 350 Sam’s Club locations.
As a result of the continued pair-up, non-members will be able to shop at Sam’s Club via Instacart — although members will receive lower, specialized pricing. According to Walmart, deliveries can be ready in as little as one hour and can include non-grocery items as well.
“To help the holidays run smooth, we’re offering a wide product assortment available on Instacart so shoppers can now get household goods delivered,” said Sachin Padwal, Sam’s Club’s VP of Product Management, in a statement. “We’re excited that last-minute gifts, small appliances, extra pillows and towels — just to name a few things — are just a few clicks and minutes away.”
The move comes as Walmart is working double- and triple-time to fend off Amazon’s ongoing and aggressive advances, particularly in grocery sales. Amazon offers grocery delivery through Whole Foods as well as through AmazonFresh and Prime Now.
Sam’s Club’s extended pair-up with Instacart comes as one of a few changes the membership club arm of Walmart has seen in recent months. The firm also offers free shipping on orders regardless of purchase size and a simplified two-tier membership system: Savings ($45) and Plus ($100).
Both are notably cheaper than Amazon Prime’s $119 a year.