Tech & Logistics

Wegmans jumps on the grocery delivery bandwagon


Wegmans Food Markets has cut a deal with Instacart to offer delivery from its stores along the East Coast.

By Gina Acosta

PrintWegmans jumps on the grocery delivery bandwagon
Wegmans jumps on the grocery delivery bandwagon

Wegmans had been one of the few major food retailers left to not offer grocery delivery.

The grocery chain started an online grocery service called Personal Shopper in early 2014 that featured curbside pickup, but never expanded the service to include delivery. 

According to Recode, the Wegmans-Instacart partnership will start in Wegmans stores in the Washington, D.C., suburbs of northern Virginia and Maryland and expand to other markets including the Boston area in the near future. Within a few months, the partnership will cover a few dozen of Wegmans’ stores, an Instacart exec said.

“Wegmans is known to be one of the highest-quality grocers and, as such, they typically do everything in house,” said Nilam Ganenthiran, Instacart’s chief business officer, told Recode. “So we are very grateful and proud.”

The new deal with Wegmans, plus recently announced partnerships with Publix, Stop & Shop, and others, are driving growth at Instacart, which raised $400 million during a financing round in March. The San Francisco-based company is now valued at $3.4 billion, according to CNN. Instacart is in about 65 markets today and is on pace to expand to more than 100 markets by the end of the year, Ganenthiran said.

Shipt announced it had raised $40 million in additional financing, on top of $23 million the Alabama-based startup had already raised. It plans to expand its delivery service to more than 100 metro areas in the next 12 months, according to an article on forbes.com.