Instacart, the grocery delivery company, declared this week that its association with Amazon-controlled Whole Foods is on the verge to end. Instacart was in the middle of a 5-year contract inked in 2016 that established the firm as exclusive delivery carrier for Whole Foods, but the agreement became knotty when Amazon purchased Whole Foods last year. The details of how the deal was terminated are not clear, but it makes sense that Amazon will now wish to deliver its personal groceries via its personal AmazonFresh and Prime Now services.
The stress between Amazon and Instacart has been increasing since the acquirement. Previous month, it was claimed by the media that it was affordable to order Whole Foods delivery using Instacart as compared to Amazon, after Instacart silently decreased its yearly charge to $99 to vie with $119 yearly membership for Amazon Prime. Instacart has also since wanted out other sources of income apart from Amazon, by associating with other retailers such as Costco, Kroger, and Sam’s Club, apart from getting VC funding.
On a related note, Whole Foods users in much of Central and North Jersey (who are also Amazon Prime users) can now receive groceries to their homes. Delivery will be accessible in almost an hour via Prime Now app by Amazon, as per the declaration this week. On orders having value $35 or more, 2-hour delivery is free of cost. If you wish your groceries less than an hour, there is a $7.99 charge on orders having value $35 or more.
“Our aim is to cover as many Prime users as achievable with this new offer in New Jersey,” claimed Tanvi Patel, Head of Business Development for Prime Now, to the media in an interview. “Now we are happy to reach users in Central and North Jersey.” Delivery will be scheduled from 8 Am to 10 PM.