Hy-Vee Integrates Instacart Fulfillment-as-a-Service Into Websites, Apps

Supermarket chain Hy-Vee has integrated Instacart Fulfillment-as-a-Service (FaaS) into its owned and operated websites and apps.

This move expands an existing partnership formed in 2018 in which Hy-Vee enabled its customers to access same-day delivery through the Instacart app, the companies said in a Thursday (Feb. 8) press release.

Hy-Vee added the FaaS solution to meet the growing demand for same-day delivery, according to the release.

With Instacart FaaS, retailers can integrate the grocery technology company’s fulfillment capabilities into their existing eCommerce platforms via an application programming interface (API), allowing them to offer same-day delivery while retaining their storefront and brand identity, the release said.

Retailers can also select from pickup or delivery-only services or full-service fulfillment, in which Instacart shoppers pick, pack and deliver, per the release.

“Our goal is to empower our partners and offer seamless and personalized shopping experiences,” Instacart Vice President of Retail Partnerships Ryan Hamburger said in the release. “We’ve spent more than a decade focusing on the care and craft of grocery and are continuing to push the envelope by creating even more fulfillment solutions that help our retail partners grow and meet the evolving needs of their customers and businesses.”

Instacart expanded its Instacart Platform in February 2023 to let grocers use its fulfillment services to pick, pack and deliver orders. The company said at the time that that this offering would make it easier for local and independent grocers to launch a comprehensive eCommerce solution.

Walmart, Amazon, Shopify and other eCommerce giants have also been building FaaS solutions, with some offerings encompassing everything from getting goods transported to warehouses, to storing them, to getting them to the customers’ doorstep.

For smaller merchants, these logistics offerings enable them to compete with larger enterprises in terms of speedy delivery and a boost in sales conversions.

PYMNTS Intelligence found in October 2022 that more than one-third of U.S. consumers reported that they had purchased groceries online for home delivery in the past month.

Forty-three percent of men and 35% of women reported that they had done so, according to “The ConnectedEconomy Monthly Report: The Gender Divide.”