Briefing

Instacart, Amazon-owned Whole Foods part ways

article-aa

The grocery delivery app will stop bringing customers bags from 76 locations in February. Instacart could lay off as many as 350 workers as a result. (Wall Street Journal)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: Delivery is core to Amazon’s business, so the Instacart-Whole Foods partnership looked doomed as soon as the e-commerce giant bought the supermarket chain in June 2017. Instacart insisted the five-year deal it had signed with Whole Foods would hold up, but by this summer, the app’s branding was being removed from stores. But after Amazon acquired Whole Foods, retailers that had previously been slow to embrace delivery began partnering up with Instacart to compete with the online giant. Chains like Kroger and Canada’s Loblaw have since been added to the app, and Instacart raised US$600 million this October on its new momentum. Some of that money will go to expanding its Toronto office, where the company plans to add 200 employees and start doing research and development work.