Report: Whole Foods To Ink Delivery Deal With Instacart

Along with the five-year delivery partnership, Instacart is also receiving a sizable investment from Whole Foods.

Report: Whole Foods To Ink Delivery Deal With Instacart
[Photo: Michael Halberstadt, courtesy of Whole Food Market]

Whole Foods is allegedly finalizing a deal with Instacart that secures a five-year delivery partnership and includes an undisclosed investment in the food delivery startup, according to Re/code. Going forward, Instacart will be charged with the delivery of any and all perishables from Whole Foods.


Though no other details of the agreement have been revealed, Re/code reports that Instacart’s partnerships with grocery stores usually also have a “revenue sharing component.”

Google Express launched same-day delivery for fresh groceries just last week, and as of now, one of Google’s initial partners in San Francisco is Whole Foods. According to Re/code, Google’s partnership only extends to a single Whole Foods location in San Francisco, which means the grocery chain’s new relationship with Instacart could sideline Google’s delivery business in the near future—at least in regards to Whole Foods.

Instacart recently let go of 12 recruiters, seemingly due to slowing growth, and Whole Foods cut about 1,500 jobs last fall for similar reasons. The latter has also seen its stock fall steadily over the past year. Assuming it comes to fruition, the rumored deal could help boost the overall performance of both companies.

An Instacart spokesperson had the following to say about the startup’s relationship with Whole Foods: “We have no news to share about the partnership between Whole Foods Market and Instacart. The relationship has been very successful for both companies, and we look forward to continuing to bring innovative services to our customers.”

Update: A Whole Foods spokesperson provided the same statement as the one offered by Instacart above.

[via Re/code]

About the author

Pavithra Mohan is an assistant editor for Fast Company Digital. Her writing has previously been featured in Gizmodo and Popular Science magazine.