Whole Foods is close to signing a five-year deal with delivery startup Instacart, according to a report from Recode.
Sources told the website that the partnership would make Instacart the exclusive delivery partner for Whole Foods’ perishables business. Both companies declined to share information on the deal.
Instacart and Whole Foods have had an existing partnership since 2014, and the deal is said to include an investment in the delivery platform. Instacart has raised $275 million in total.
A five-year deal with Whole Foods may signal a move toward maturity in the crowded grocery delivery space.
The grocery chain suffered a stock setback of more than 45 percent over the past year. Instacart, meanwhile, saw a rocky close to 2015 as it laid off 12 in-house recruiters last December and increased its delivery fees by 50 percent.
In an earnings report this month, Walter Robb of Whole Foods pointed to Instacart deliveries as comprising a “mid-to-high single digit” proportion of sales in some stores.
Separately, the Bay Area grocery chain Andronico’s sent out a release saying that three of their trade areas had surpassed $1 million in Instacart sales in total.
Source: San Francisco Business Times