Albertsons Partners with Instacart to Offer Delivery at over 1,800 Stores

The grocery giant Albertsons is making another move to compete with Amazon's plans to conquer the food sector with its acquisition of Whole Foods.

The grocer has made a deal with Instacart to offer delivery to over 1,800 Albertsons stores by mid-2018. 

Albertsons store front

It's been a busy and successful few months for Instacart. Following Amazon's deal to acquire Whole Foods, five big grocery chains made their own deals to partner up with the grocery delivery startup. Kroger, Publix, Ahold, H-E-B, and Albertsons will be offering food product delivery through the service.

"Ever since the Amazon-Whole Foods deal happened, things are very different," said Apoorva Mehta, Instacart CEO to "CNBC.""After that deal happened, we were every major retailer's first call." 

Instacart even has a partnership deal with Whole Foods, but Mehta said that he didn't know if the chain would still be a partner after its contract expires. 

These grocers have realized that they have to step it up in order to cater to the on-the-go consumer. 

Besides being a logistics company, Instacart offers an e-commerce platform with analytics.

Albertsons now offers same-day delivery at Safeway stores and Albertsons brands. 

Instacart is right in the middle of this on-demand delivery boom. 

 It was previously valued at $3.4 billion and has investments from big Wall Street firms like Andreessen Horowitz, Sequoia and Kleiner Perkins, reports "CNBC."

Albertsons also is expanding its meal-kit delivery options. Last September, the company announced that its was acquiring Plated. 

“Today’s consumer is looking for a variety of personalized shopping alternatives, and this transaction is the latest example of Albertsons Cos. meeting our customers wherever and however they like to shop,” said Bob Miller, chairman and CEO of Albertsons Companies in a press release.

The grocery giant is trying to stay a step ahead of Amazon in this sense. There has been speculation that Amazon will get also into the meal-kit business. In July, it was discovered that meal kits were already available via Amazon Fresh in Seattle. But, Amazon pulled the listing once a media frenzy ignited about the meal-kits.

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