Instacart and Uber announced a new and unexpected partnership on Tuesday that adds hundreds of thousands of Uber Eats’ restaurants to the Instacart app.
In the next few weeks, Instacart will add a “Restaurants” tab to its app, giving its customers access to Uber Eats.
Members of Instacart+, the company’s loyalty program, who place orders from Uber Eats-affiliated restaurants will receive the same offer — free delivery for orders over $35 — given to Instacart’s grocery customers.
Instacart noted in a press release that Instacart drivers will still fulfill grocery orders, while Uber Eats couriers will fulfill restaurant orders.
“Our goal is to make it effortless for people to go anywhere and get anything,” said Uber CEO Dara Khosrowshahi in the press release. “We’re excited that this new strategic partnership with Instacart will bring the magic of Uber Eats to even more consumers, drive more business for restaurants, and create more earnings opportunities for couriers.”
Instacart CEO Fidji Simo said the partnership aims to make it easier for Instacart customers “to conveniently tackle all their food needs from a single app.”
“Whether it’s ingredients for a beloved family recipe, a prepared meal from a nearby grocer or takeout from a favorite restaurant — customers can now get the food they want, from the retailers and restaurants they love, all within the Instacart app,” Simo said.
The partnership helps Uber by driving more orders to its restaurant partners, the company said.
Meanwhile, the new partnership poses a challenge to competitor DoorDash, which offers delivery both for restaurants and grocery stores, among other retail businesses.
DoorDash CEO Tony Xu said at the beginning of 2024 that the company aims to expand further into grocery in 2024.
As of January, DoorDash dominated restaurant delivery with 59% of the market, according to YipitData.
In mid-February, Xu said making grocery a priority has “paid off really well,” noting that more than 20% of its customers were using the app for non-restaurant delivery.
“I mean, we're now north of 100,000-plus stores that are outside of restaurants that are on our platform, which, you know, we estimate to be the largest in North America,” he said during DoorDash’s Q4 earnings call in February. “More and more grocery retailers are coming inbound. And then similarly, more and more consumers are shopping for the first time in the grocery category on DoorDash even ahead of restaurants.”
