Whole Foods Invests in Instacart
On-demand grocery delivery is taking over, and Whole Foods has taken notice. As people try to avoid the long checkout lines at Whole Foods, more of them are choosing to get their groceries delivered via Instacart. As a result of this growing trend, Whole Foods announced that it has bought equity in the four-year-old startup. The shares were added to Instacart's previous funding round at the same share price as late 2014.
Total Retail's Take: Grocery delivery has become an increasingly popular option for consumers in recent years. With companies such as Blue Apron, FreshDirect and Amazon.com getting into the grocery delivery business, it's created new competition. Whole Foods’ investment in Instacart puts it in a better position to reverse its reputation of being overpriced and out of touch, and help it get out of its long sales slump.
