E-commerce grocery concierge Instacart launched service Tuesday in Washington, D.C., in partnership with Ahold's Giant-Landover — a deal the companies said would augment Giant's existing grocery delivery business through sister company Peapod by providing a more immediate e-fulfillment option.
"We are excited to partner with Instacart and expand our convenient delivery options for Washington D.C. customers," Gordon Reid, president of Giant-Landover, said in a statement. "Our goal is to help our customers save money, save time and eat well and this unique pilot gives our customers the ability to shop where, when, and how they want, using Instacart in addition to our convenient Giant store locations and Peapod delivery and pick-up services."
Giant delivery by Instacart is available to all zip codes throughout Washington, D.C. from Giant's participating O St. Market and Cathedral Commons locations.
Using Instacart employees who shop and deliver from those stores, the companies said the offering would provide grocery delivery for e-commerce shoppers in as little as an hour. Using Peapod typically requires next-day service. This distinction — along with generally higher pricing for Instacart orders which do not always reflect store prices or in-store discounts, and includes added delivery and tip fees — differ the two services.
Peapod delivery costs typically range from $7.95 to $9.95 per order with no product upcharges, and typically charges the same prices available in local stores.
"Instacart will complement Peapod with short term, same-day convenient delivery service for our Washington, D.C., customers," Giant spokesman Jamie Miller told SN in an email. "This distinct service adds to Giant's array of delivery options for time-strapped customers. We will evaluate this pilot over time to determine how well it complements our current e-commerce portfolio."
Instacart has operated in the Washington market since 2014 in partnership with Whole Foods Market, Magruders, Harris Teeter, Safeway and Yes Organic Market.
"We're thrilled to partner with Giant to give our Washington, D.C., customers a new delivery option," Vishwa Chandra, Instacart's VP of business development and strategy said in a statement. "As we continue to expand in this market, our customers only benefit from expanded options with brands they love and trust."
Instacart typically charges a percentage of sales through the service to its retailer partner. Spokespeople for Giant and Instacart however declined to discuss financial details of their deal or their expectations of sales volume.
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