Instacart Expands Reach to Independent Grocery Stores

Instacart has launched a partnership with wholesale grocery distributor group Merchants Distributors (MDI).

This collaboration, announced Thursday (Aug. 28), is designed to offer Instacart’s eCommerce solutions to MDI’s network of independent grocers.

Those grocers, the companies said in a news release, will be able to join the Instacart App to offer customers same-day delivery. The partnership also gives them access to Storefront Pro, Instacart’s eCommerce solution built specifically for grocers.

“We’ve long admired MDI and how, for over 90 years, they have supported independent grocers with essential expertise, infrastructure, and scale, so that they can thrive and grow. It’s a privilege to team up with MDI and their retailers to enhance the guest experience with the adoption of Instacart’s platform,” said Nick Nickitas, general manager of independent grocery and mid-market retail partnerships at Instacart.

“Together we’ll empower leading local grocers to deliver a seamless, flexible way to shop while preserving the local connection that sets them apart in the communities they serve.”

According to the release, Storefront Pro gives MDI’s independent retailers “advanced customization capabilities” and “robust control” over digital storefronts, including access to data and analytic tools powered by Instacart’s technology to help spot growth opportunities.

These grocers also get access to fulfillment technologies and new retail media capabilities through Instacart’s Carrot Ads.

Research by PYMNTS Intelligence has found the importance of data tools for grocers. It shows that more than 65% of grocery and retail merchants lack access to real-time supply chain data, even though more than 7 in 10 say such data is critical for business decisions, underscoring a significant operational blind spot.

“The lack of data readiness also impacts a retailer’s ability to innovate, expand their customer base and even manage their supply chains efficiently, leading to potential issues like excess inventory costs,” PYMNTS wrote earlier this year, adding that the research “emphasizes that becoming data-ready requires addressing both organizational silos and technical limitations to not only survive but thrive in an increasingly competitive market.”

Meanwhile, Instacart said earlier this month that its shoppers were ordering more often — and more carefully — as digital tools reshape how value is presented and perceived on the platform.

CEO Fidji Simo said the company is seeing “a meaningful shift in consumer behavior,” as order volume increased on weekdays and earlier in the day. “That’s very encouraging in terms of the utility we’re providing,” she told analysts on the earnings call.

“Consumers want to feel confident they’re getting good value,” Simo said. “And we’re helping our retail partners deliver that.”