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Target to Drop Instacart in Wake of Shipt Acquisition

Target to Drop Instacart in Wake of Shipt Acquisition

Tuesday, January 9th, 2018

Following Target’s recent acquisition of Shipt, which was taken on for $550 million last month, the retailer is stepping away from its partnership with Instacart.

Eddie Baeb, Senior Manager of Communications/PR, Target"We want to offer a great experience through Shipt," Target’s Senior Manager of Communications/PR, Eddie Baeb, said, according to the StarTribune. "So obviously that's where we're going to focus going forward."

Baeb confirmed Target’s plans to leave its Instacart partnership, but added that there is no set timeline for the severed ties. As of now, Instacart’s services are offered in Twin Cities, Chicago, and San Francisco.

While Instacart declined to comment at the time of the StarTribune article, a source familiar with the issue stated that Instacart’s business in those three markets amounts to less than one percent of the delivery company’s entire volume.

Target with Instacart

Costco, Whole Foods, and Cub Foods, among others, are also partners with Instacart.

How will the dissolution of the retail powerhouse's partnership with Instacart influence the rest of the industry? Deli Market News will keep you up-to-date with the latest.