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Walmart’s Sam’s Club partners with Instacart for same-day grocery delivery

Walmart’s Sam’s Club partners with Instacart for same-day grocery delivery

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  • Just a couple weeks ago, Instacart raised another $200 million (https://www.bloomberg.com/news/articles/2018-02-12/instacart-adds-200-million-to-defend-against-amazon-delivery).

    Last year, the company raised $400 million and was gross margin profitable on 88% of its total volume. But was still losing

    Just a couple weeks ago, Instacart raised another $200 million (https://www.bloomberg.com/news/articles/2018-02-12/instacart-adds-200-million-to-defend-against-amazon-delivery).

    Last year, the company raised $400 million and was gross margin profitable on 88% of its total volume. But was still losing money overall.

    This is a low margin business even at scale, but it’s undeniable that Instacart is well-positioned to take advantage of the race to bring the web and deliveries to groceries, prompted by the Amazon-Whole Foods deal. Maybe that’s the opportunity these new investors saw. Is that potential growth worth the long lead time until profits though?

  • It's not surprising to see the continued success of Instacart despite the potential loss of Whole Foods as a customer. Amazon's acquisition of Whole Foods will continue to spur additional growth for Instacart, which competitors view as a competitive response to Amazon.

  • It's impressive to see how Instacart has been able to compete against Amazon/Whole Foods with its grocer partnerships as well as this new deal with Sam's Club. Walmart will keep taking on Amazon but it's all about the right partners.

  • The oddest line for me in this article was the one that asserted that Walmart and Amazon are engaged in a one-up battle with each other. Amazon doesn’t seem at all interested in competing with Walmart, instead relentlessly pursuing its own version of what the world should be like and forcing acquisition

    The oddest line for me in this article was the one that asserted that Walmart and Amazon are engaged in a one-up battle with each other. Amazon doesn’t seem at all interested in competing with Walmart, instead relentlessly pursuing its own version of what the world should be like and forcing acquisition after acquisition and continual feature chase by Walmart. What is Walmart going to do differently and better? Take Nordstrom, which has continually distinguished itself from Amazon and other retailers by producing a differentiated service layer. Walmart needs this sort of push.