Photo (cc) by Kristine Paulus
If you just ran out of Fido’s dog food and can’t get to the store, don’t despair. Instacart, the grocery delivery business, is now offering one-hour delivery service in 14 cities for its Petco customers.
According to Internet Retailer, Instacart’s partnership with Petco is the first nongrocery offering from the delivery service.
“We are thrilled that Petco has been so well-received by Instacart customers and look forward to making the service available to customers throughout all of our markets,” said Instacart founder and CEO Apporva Mehta in a statement. “Our model is designed not only to make customers happy but also to help all types of retailers be able to offer the convenience of delivery without the logistical hassles or capital expenditures.”
The following cities will be able to take advantage of the quick delivery option: Atlanta, Austin, Boulder, Boston, Chicago, Denver, Houston, Los Angeles, Philadelphia, Portland, Oregon, San Francisco, San Jose, Seattle and Washington, D.C.
Industry experts expect only a small number of Petco customers to take advantage of the Instacart service. Sucharita Mulpuru, a retail analyst with Forrester Research, said: “It’s not a big group of people who will pay for this — maybe 10 percent of buyers will pay for the service — but it’s a nice service to add so long as the retailer doesn’t have to absorb the full cost. That’s most important.”
This is how Instacart’s delivery fees work out:
- Orders of more than $35. You’ll pay $3.99 for two-hour delivery or $5.99 for one-hour service.
- Orders of less than $35. Customers pay $7.99 for two-hour delivery or $9.99 for a one-hour option.
- Instacart Express. Requires a $99 annual membership fee, but it eliminates any delivery fees for purchases of more than $35.
Petco said the fast delivery service will be available in New York City later this summer. Instacart said more cities will be added this year.
“Customer feedback has been positive, and we see same-day delivery in these 14 cities as a key component of Petco’s consumer-focused omnichannel offering,” said Brad Weston, Petco’s executive vice president and chief merchandising officer.
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