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.
Neither company would share the financial details of the deal, so we don’t have any insight into how much Instacart is paying to use Uber’s food delivery software. Uber spokesperson Noah Edwardsen said that prices would not change for customers, nor would couriers see smaller payouts.
“Consumers will see the same restaurant menu prices on Instacart that they do on Uber Eats, and couriers will be paid the same way they would be for orders directly from Uber Eats,” Edwardsen said.
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.
