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Instacart is reportedly exploring 15-minute delivery of groceries and convenience items as the need for speed intensifies in the competitive delivery space, sources with direct knowledge of the plan told The Information.
America’s first grocery delivery startup, which was last valued at $ 39 billion, reportedly plans to pay a courier management company to handle fast deliveries from the same stores where customers shop already for delivery in two hours.
Plans to roll out the service in the United States could be tested in a city as early as February, the sources told the outlet, positioning the company to compete with super-fast delivery startups Jokr, Getir and Gorillas.
See also: Lightning-fast grocery delivery service Jokr leverages lessons from New York to drive Boston expansion
The super-fast delivery model differs from Instacart, which operates a marketplace in partnership with merchants and employs subcontractors to buy and deliver. Lightning-fast startups buy merchandise wholesale and operate from a network of local warehouses – also known as dark stores – located in central locations near neighborhoods. The super-fast model is also run by employees rather than independent contractors.
The Instacart pilot seeks to adapt to the speed of new startups, while avoiding stock ownership.
A spokesperson for Instacart told The Information that it “is constantly exploring even faster delivery options,” but denied that there were any plans underway. “Unlike other businesses entering the grocery and convenience business, we focus on empowering retailers, without ever competing with them. “
Read more: Lightning-fast grocery delivery services compete globally for on-demand loyalty
Instacart’s 15-minute concept would involve another delivery company providing the couriers to wait for orders in stores. This company would also take care of the delivery and management of the vehicles. The company has been in talks with advisers regarding the plan, including supply chain consultant Brittain Ladd, a source told the outlet.
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