Instacart Competitors

Instacart faces competition from various players in the grocery delivery industry. Key competitors include grocery delivery companies like Amazon Fresh, Shipt, FreshDirect, and Peapod. Retail chains with delivery services such as Walmart Grocery Delivery, Target Same Day Delivery, Kroger Delivery, and Albertsons Delivery also compete with Instacart. Additionally, meal kit delivery services like Blue Apron, HelloFresh, Home Chef, and Sun Basket, along with online grocery stores like Amazon Fresh, Walmart Grocery, Thrive Market, and Boxed, add to the competitive landscape. Instacart must navigate these competitors to maintain its position in the market.

CompetitorDescriptionKey InsightsCompetitive OverlapDifferentiation
Amazon FreshA grocery delivery and pickup service offered by Amazon, providing access to a wide range of groceries and household items. Amazon Fresh competes directly with Instacart in the online grocery delivery market.Amazon Fresh offers grocery delivery and pickup, directly competing with Instacart in segments like online grocery shopping, same-day delivery, and Prime membership benefits, targeting customers seeking convenience and selection.Both compete in the online grocery delivery market, providing access to a wide range of groceries and household items, with Amazon Fresh’s focus on its Prime ecosystem and Whole Foods integration.Amazon Fresh’s integration with the Prime ecosystem and Whole Foods.
Walmart GroceryAn online grocery pickup and delivery service provided by Walmart, one of the largest retail chains in the world. Walmart Grocery competes directly with Instacart in the online grocery shopping market.Walmart Grocery offers online grocery ordering, pickup, and delivery, directly competing with Instacart in segments like online grocery shopping, curbside pickup, and affordability, targeting budget-conscious shoppers.Both compete in the online grocery shopping market, offering groceries, pickup, and delivery services, with Walmart Grocery’s focus on affordability and its extensive physical store network for pickup.Walmart Grocery’s affordability and physical store pickup options.
ShiptA grocery delivery service owned by Target, offering same-day delivery of groceries and other essential items. Shipt competes with Instacart in the on-demand grocery delivery market.Shipt specializes in grocery delivery and same-day service, directly competing with Instacart in segments like on-demand delivery, membership-based pricing, and grocery store partnerships, targeting shoppers seeking convenience and speed.Both compete in the on-demand grocery delivery market, providing same-day delivery of groceries and essentials, with Shipt’s focus on its membership model and partnership with Target stores.Shipt’s membership-based pricing and Target store partnerships.
PeapodAn online grocery delivery service owned by Ahold Delhaize, offering groceries and meal kits. Peapod competes with Instacart in the online grocery delivery market.Peapod provides online grocery delivery and meal kit options, directly competing with Instacart in segments like online grocery shopping, meal kit delivery, and partnership with grocery chains, targeting busy consumers.Both compete in the online grocery delivery market, offering groceries and meal kits, with Peapod’s focus on its longstanding presence and partnerships with grocery chains under Ahold Delhaize.Peapod’s longstanding presence and grocery chain partnerships.
FreshDirectAn online grocery delivery service based in the New York metropolitan area, known for its selection of fresh and organic products. FreshDirect competes with Instacart in the online grocery delivery market.FreshDirect offers online grocery delivery with a focus on fresh and organic products, directly competing with Instacart in segments like fresh produce, meal solutions, and local delivery, targeting health-conscious shoppers.Both compete in the online grocery delivery market, providing fresh and organic products, with FreshDirect’s focus on sourcing directly from local farms and culinary expertise.FreshDirect’s local sourcing and culinary expertise.
Kroger DeliveryAn online grocery delivery and pickup service offered by Kroger, one of the largest supermarket chains in the United States. Kroger Delivery competes directly with Instacart in the online grocery shopping market.Kroger Delivery provides online grocery ordering, pickup, and delivery, directly competing with Instacart in segments like online grocery shopping, loyalty programs, and supermarket partnerships, targeting customers looking for convenience and savings.Both compete in the online grocery shopping market, offering groceries, pickup, and delivery services, with Kroger Delivery’s focus on its supermarket chain partnerships and customer loyalty programs.Kroger Delivery’s supermarket partnerships and loyalty programs.
PostmatesAn on-demand food delivery and courier service that also offers grocery delivery. Postmates competes with Instacart in the on-demand grocery delivery market.Postmates offers on-demand grocery delivery, directly competing with Instacart in segments like convenience, fast delivery, and a wide range of products, targeting customers looking for immediate delivery options.Both compete in the on-demand grocery delivery market, providing fast delivery of groceries and essentials, with Postmates’ focus on its extensive courier network and a broader range of delivery options beyond groceries.Postmates’ courier network and broader delivery options.
Uber Eats GroceryA service offered by Uber Eats that provides grocery delivery from local stores. Uber Eats Grocery competes with Instacart in the on-demand grocery delivery market.Uber Eats Grocery offers on-demand grocery delivery, directly competing with Instacart in segments like convenience, app-based ordering, and partnerships with local stores, targeting users seeking quick delivery of groceries.Both compete in the on-demand grocery delivery market, providing convenience and fast delivery of groceries, with Uber Eats Grocery’s focus on leveraging its existing food delivery network and app-based ordering.Uber Eats Grocery’s app-based ordering and existing delivery network.
Yummy.comA grocery delivery service that focuses on delivering fresh and local products, including groceries, snacks, and household items. Yummy.com competes with Instacart in the online grocery delivery market.Yummy.com specializes in fresh and local product delivery, directly competing with Instacart in segments like convenience, local sourcing, and curated product selection, targeting customers looking for premium and local options.Both compete in the online grocery delivery market, offering fresh and local products, with Yummy.com’s focus on curating a unique selection of items and supporting local businesses.Yummy.com’s curated product selection and local sourcing.
Safeway Grocery DeliveryAn online grocery delivery and pickup service offered by Safeway, a supermarket chain. Safeway Grocery Delivery competes directly with Instacart in the online grocery shopping market.Safeway Grocery Delivery provides online grocery ordering, pickup, and delivery, directly competing with Instacart in segments like online grocery shopping, supermarket partnerships, and loyalty programs, targeting customers seeking convenience and savings.Both compete in the online grocery shopping market, offering groceries, pickup, and delivery services, with Safeway Grocery Delivery’s focus on its partnership with Safeway stores and loyalty program integration.Safeway Grocery Delivery’s Safeway store partnership and loyalty program.

 

Grocery Delivery Companies:

  • Amazon Fresh: An online grocery delivery service offered by Amazon.
  • Shipt: A same-day delivery service specializing in groceries and household essentials.
  • FreshDirect: An online grocer delivering fresh food directly to customers’ doors.
  • Peapod: An online grocery delivery service that operates in several U.S. markets.

Retail Chains with Delivery Services:

  • Walmart Grocery Delivery: Walmart’s grocery delivery service available in select locations.
  • Target Same Day Delivery: Target’s same-day delivery service for groceries and other items.
  • Kroger Delivery: Kroger’s grocery delivery service offered through various store brands.
  • Albertsons Delivery: Albertsons’ grocery delivery service available in select regions.

Meal Kit Delivery Services:

  • Blue Apron: A meal kit delivery service that provides pre-portioned ingredients and recipes.
  • HelloFresh: A meal kit delivery service that offers easy-to-follow recipes and fresh ingredients.
  • Home Chef: A meal kit delivery service with customizable recipes and flexible plans.
  • Sun Basket: A meal kit delivery service that focuses on organic and sustainable ingredients.

Online Grocery Stores:

  • Amazon Fresh: An online grocery store offering a wide selection of products for delivery.
  • Walmart Grocery: Walmart’s online grocery store providing pickup and delivery options.
  • Thrive Market: An online marketplace for organic and natural products, including groceries.
  • Boxed: An online wholesale store for groceries and household products.

Key Competitors of Instacart in the Grocery Delivery Industry:

  • Grocery Delivery Companies:
    • Amazon Fresh: Amazon’s online grocery delivery service offering a wide range of products.
    • Shipt: A same-day delivery service specializing in groceries and household essentials.
    • FreshDirect: An online grocer delivering fresh food directly to customers’ homes.
    • Peapod: An online grocery delivery service available in multiple U.S. markets.
  • Retail Chains with Delivery Services:
    • Walmart Grocery Delivery: Walmart’s grocery delivery service available in select locations.
    • Target Same Day Delivery: Target’s same-day delivery service for groceries and other items.
    • Kroger Delivery: Kroger’s grocery delivery service accessible through various store brands.
    • Albertsons Delivery: Albertsons’ grocery delivery service available in specific regions.
  • Meal Kit Delivery Services:
    • Blue Apron: Offers pre-portioned meal kits with ingredients and recipes for cooking.
    • HelloFresh: Provides easy-to-follow recipes and fresh ingredients in its meal kits.
    • Home Chef: Offers customizable meal kits with a variety of recipes and flexible plans.
    • Sun Basket: Focuses on organic and sustainable ingredients in its meal kit offerings.
  • Online Grocery Stores:
    • Amazon Fresh: An online grocery store with a wide selection of products available for delivery.
    • Walmart Grocery: Walmart’s online grocery store offering pickup and delivery options.
    • Thrive Market: An online marketplace specializing in organic and natural products, including groceries.
    • Boxed: An online wholesale store for groceries and household products.

Instacart Business Model

how-does-instacart-make-money
Instacart’s business model relies on enabling an easy set up for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees, via memberships, and by running performance advertising on its platform.

Related Business Models

DoorDash

how-does-doordash-make-money
DoorDash is a platform business model that enables restaurants to set up at no cost delivery operations. At the same time, customers get their food at home and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

Glovo

glovo-business-model
Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app. Founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity).

GrubHub

grubhub-business-model
Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, andTapingo. The company makes money primarily by charging restaurants a pre-order commission and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services and when diners pay for those services. 

Instacart

how-does-instacart-make-money
Instacart’s business model relies on enabling an easy set up for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees, via memberships, and by running performance advertising on its platform.

Lyft

lyft-business-model
Lyft is a transportation-as-a-service marketplace allowing riders to find a driver for a ride. Lyft has also expanded with a multimodal platform that gives more options like bike-sharing or electric scooters. Lyft primary makes money by collecting fees from drivers that complete rides on the platform.

Postmates

postmates-business-model
Postmates is a food delivery service built as a last-mile delivery service platform connecting locals with shops. Postmates makes money by collecting fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually) giving free delivery on every order of more than $12.

Uber Eats

uber-eats-business-model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner and a customer with Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay the small delivery charges, and at times, cancellation fee; Drivers earn through making reliable deliveries on time.

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