Instacart and Walmart Canada launch a virtual convenience store

Diving brief:

• Instagram announced Thursday it expanded its partnership with Walmart Canada to include a virtual convenience store pilot project in Toronto.
• Called Walmart Now, the virtual store offers nearly 4,000 items for delivery in just 30 minutes with a service powered by Instagram and orders fulfilled at 10 of the retailer’s stores, according to a Walmart Canada press release. The service, available on Instacart’s the app and the Instagram-powered Walmart Now site, uses some of the tech company’s new retail services unveiled in March.
• The virtual convenience store comes at a time when Instagram expands its service offerings and faces growing competition to enable rapid delivery to retailers.

Overview of the dive:

Walmart Now marks the latest expansion of Instagram-powered by virtual convenience stores as a service the technology company relies on its retail offerings to stay ahead in the grocery e-commerce space.

“Customers today expect convenience and fast delivery coupled with a wide selection. We know these components are fundamental as retailers seek to create the best online grocery experience for their customers,” Instacart’s Vice President of Retail Chris Rogers said in Thursday’s announcement.

To power Walmart Now, the retailer uses Instacart’s end-to-end white label e-commerce solution called Carrot Storefront, which is one of the services of its Instacart platform.

The nearly 4,000 items available on Walmart Now include “most purchased items” and “a wide assortment of fresh groceries, pantry and household essentials, snacks and more,” said businesses in their ads.

The new virtual c-store offer will reach more … than 40% of households in the Greater Toronto Area.

Instagram and Walmart Canada, which first partnered in 2018, had previously rolled out delivery in as soon as an hour from more than 250 retailer outlets across the country. This service is available both through the Instagram and Walmart Canada platforms.

Instagram has already linked up with major grocers in the United States, including Kroger, Publix and several Ahold Delhaize banners, on virtual convenience stores in recent months.

Few months ago, Instagram announcement Instagram platform, which bundled existing services for retailers such as e-commerce development with new ones, such as 15-minute delivery powered by “nano-distribution centers. »

As Instagram expands its convenience store offering with retailers in North America, it faces competition not only from fast-delivery companies, such as gopuffbut also rival DoorDash.

Wednesday, DoorDash announced the launch of Dark Store Fast Delivery in partnership with Canadian Grocer Loblaw as it seeks to increase its presence in grocery stores. DoorDash had previously launched an “express” grocery delivery service with Albertsons, with fulfillment taking place at the grocery chain’s stores.