Aldi to pilot grocery delivery with Instacart

Lloyd Doyle
August 14, 2017

The pilot, which could expand to additional cities in the future, is Aldi's way of expanding its "commitment to customer convenience", the company says.

German grocery chain Aldi said on Sunday it has partnered with Instacart to deliver groceries in three USA cities, a move that comes amid intense competition and disruption in the industry.

The discount retailer does not offer customers an option to shop on its own website at the moment, so Instacart's online platform will serve as a launch-pad for its American delivery foray.

Aldi is ramping up its ambitions in the U.S. after Amazon announced its US$14bn takeover of upmarket food chain Whole Foods. The US start-up is also threatened by the Amazon deal because it has been partners with Whole Foods since 2014.

Based in Batavia, Ill., Aldi operates almost 1,700 stores in 35 USA states.

The e-commerce shakeup has dramatically changed the retail industry however, it has been slow to hit food sales.

Online only accounts for roughly 4% of the United States grocery market, but this figure is expected to rise to as much as 20% by 2025.

It's not surprising Aldi's testing grocery deliveries; analysts have warned that the $13.7 billion Amazon-Whole Foods merger would force supermarkets to take delivery service more seriously.

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