Kroger is introducing a virtual convenience store in collaboration with Instacart that delivers groceries and other supermarket items in as little as 30 minutes.
Items ordered using the Kroger Delivery Now service will be fulfilled by Kroger and delivered by Instacart. The virtual convenience store stocks 25,000 products and is available from early morning until late at night, according to an Instacart press release.
The partnership makes Kroger the first supermarket to offer a “national convenience delivery solution” via its website, app, and Instacart’s new Convenience Hub, which is now part of the delivery company’s marketplace.
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Instacart is debuting its Convenience Hub with the collaboration with Kroger. The Hub is a “new product experience” that offers convenience products every day, 24 hours a day, with free 30-minute delivery for Instacart Express members on orders over $10.
“Kroger Delivery Now is a differentiated solution in the eCommerce industry, not just the grocery sector,” said Kroger Chairman and CEO Rodney McMullen.
“Last year, Kroger achieved more than $10 billion in e-commerce sales, and we’re committed to doubling both our digital sales and profitability rate by the end of 2023 and expect Kroger Delivery Now will help us reach that target,” McMullen said.
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He added that the offering has a customer reach of 50 million households and builds out Kroger’s flourishing eCommerce framework “that demonstrates strategic interplay among our assets.”
Convenience orders on Instacart are up over 150 percent since May and almost 20 percent of users opt for Priority Delivery at checkout, according to the release. Kroger Delivery Now taps over 2,700 stores in Kroger’s network, including Ralphs, Fred Meyer, King Soopers and others.
Instacart CEO Fidji Simo said the collaboration with Kroger builds on “our long-time, strategic partnership” and is the first time 30-minute delivery is being offered to customers who shop at Kroger and its other grocery stores.
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“Instacart has become a powerful retail enablement platform and today’s expansion of our Kroger partnership is another example of our commitment to develop new solutions that help retailers grow and meet the evolving needs of their businesses and customers,” Simo said.
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