Grocery delivery service Instacart is expanding into restaurant takeout thanks to a new partnership with Uber Eats.
In the coming weeks, Instacart will add a new feature for restaurant delivery, with the back-end mechanics powered by Uber. The listing of restaurants will be provided by Uber, the transaction will be overseen by Uber’s software, and the food will be picked up and delivered by Uber Eats couriers. The only difference is that everything will take place within Instacart’s app or website.
Uber says its motivation is to “drive more orders to Uber Eats restaurant partners,” while Instacart gets to add a galaxy of new businesses to its delivery operation without having to go through the laborious process of building it from the ground up. In its press release, Uber says it is joining Instacart to “create technologies and solutions that support brick-and-mortar businesses.”
Still, it’s a curious move considering both companies compete with each other over grocery customers. Instacart dominates digital grocery delivery, capturing more than 70 percent market share in 2023. Still, Walmart and Amazon remain the biggest players in the overall grocery delivery business.
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