Instacart, the grocery delivery service, has teamed up with Uber Eats to introduce an exciting addition for its customers: restaurant delivery.
San Francisco-based Instacart announced on Tuesday that its U.S. shoppers can expect to find a “Restaurants” section within the company’s app in the upcoming weeks. Deliveries for restaurant orders will be handled by Uber Eats drivers.
Instacart stated that its Instacart Plus members, who subscribe for $99 annually or $9.99 monthly to enjoy complimentary grocery deliveries on orders over $35, will now also receive free restaurant delivery for orders surpassing $35. Meanwhile, regular Instacart members will incur Uber Eats delivery fees.
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Instacart mentioned that it will receive an affiliate fee with each order placed through the partnership, although it refrained from disclosing any further financial specifics regarding the arrangement.
Instacart highlighted that the majority of Americans purchase groceries, whether online or in-store, at least once weekly. Additionally, over one-third of them opt for takeout or delivery at least once weekly, and Instacart aims to cater to this demand too.
This agreement will provide Instacart customers with additional advantages within the fiercely competitive grocery delivery sector. Presently, Instacart holds approximately 25% of the market share in the U.S., trailing behind Walmart, which commands 51%, as reported by YipitData, a market research firm.
Other delivery firms, such as DoorDash and Uber Eats itself, are also steadily expanding their presence within this market, albeit holding smaller portions.
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Uber Eats expressed that the collaboration with Instacart would lead to an increased flow of customers to its restaurant affiliates, particularly in suburban areas, which constitute the primary user base for the grocery delivery service.
Prior to its initial public offering last summer, Instacart disclosed in its filings that it boasted 7.7 million monthly active users. However, neither company provided information regarding the overlap of customers between Instacart and Uber Eats.