Instacart is partnering with Uber Technologies Inc. to offer restaurant delivery through the Instacart app — taking on the top US food delivery app, DoorDash Inc.
In this photo illustration, the Instacart logo is displayed on a computer monitor on Aug. 28, 2023, in San Anselmo, California.
Simo said she first approached Khosrowshahi about the idea. She declined to disclose specific financial terms of the deal but said that Uber will pay Instacart an affiliate fee for every order that her company passes on to it. Restaurant merchants won’t be able to tell whether the order is from an Uber Eats or Instacart customer, Khosrowshahi said, as Instacart restaurant orders will be funneled through Uber Eats.
US delivery apps like Uber, Instacart and DoorDash are seeking new areas for growth, which has tapered off since the pandemic when many customers developed a habit of regularly ordering in. Among third-party apps, Instacart still maintains a lead in big-ticket grocery purchases, based on public filings. It also has more than 5 million paid subscribers. Those loyal users represent more than half of the activity on the Instacart platform, which has over 7.7 million monthly active users, Instacart’s CFO Nick Giovanni said last November.
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