Grubhub is about to sell a lot more groceries.
The restaurant delivery app is partnering with Instacart to offer the grocery delivery service's catalog of nearly 100,000 stores on Grubhub’s app and website.
Customers will be able to order groceries via Grubhub, and have them selected and delivered by an Instacart worker, which the company calls shoppers. The new options will be available under the Grocery tab on Grubhub.
The partnership will provide a massive boost to Grubhub’s grocery selection, which has lagged behind competitors DoorDash and Uber Eats. Instacart works with more than 1,800 national, regional and local grocers in North America.
“This partnership marks an exciting step forward for Grubhub,” said Howard Migdal, CEO of Grubhub, in a statement. “With nearly 20 million customers and access to over 415,000 restaurants, we’re now expanding our platform to include groceries powered by Instacart—delivering an unmatched level of choice and value.”
It is the latest step in the revival of Grubhub under new owner Wonder, the food hall/delivery/meal kit operation that acquired it earlier this year for $650 million. Chicago-based Grubhub has fallen behind DoorDash and Uber Eats in terms of U.S. market share. But it has reported a return to growth and profitability with Wonder, which has raised more than $2 billion in funding.
It was not clear how Instacart’s grocery selection stacks up against DoorDash and Uber Eats. The two restaurant apps have been pushing into grocery delivery for several years, scoring partnerships with huge chains like Kroger, Albertsons and Walmart. But Instacart works with all of those brands too. It should put Grubhub more on par with the other two in terms of grocery selection.
For Grubhub, the partnership gives customers another reason to use its app, without having to operationalize grocery delivery on its own. Grubhub also features delivery from more than 415,000 restaurants and other businesses in more than 4,000 U.S. cities. For Instacart, it gives the company another source of orders. It's the first time it has embedded its service in another app.
The companies declined to share the financial terms of the partnership.
“We’re proud to serve as Grubhub's grocery delivery partner, bringing the Instacart grocery experience directly to millions of Grubhub customers,” said Ryan Hamburger, VP of commercial partnerships at Instacart, in a statement. “With our unmatched selection of grocers and our leading technology and fulfillment capabilities, we’re helping Grubhub expand its platform and reach. It’s another way we’re a true grocery technology enablement company—continuously driving value for our retail partners by powering seamless grocery experiences wherever people shop online.”
This is not the first time that Instacart has worked with a food delivery company. Last year, it partnered with Uber Eats to provide restaurant delivery in the Instacart app.
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