The service will only be available in three cities to start.
Instacart lets users select their groceries from various partnered supermarkets, which are then delivered by a personal shopper. Amazon—with its Amazon Fresh service and its recent acquisition of Whole Foods—has so far dominated the grocery delivery game, but discount supermarket Aldi clearly sees an opportunity to break into the market itself.
“That’s more important than ever given Amazon just declared war on every supermarket and corner store in America,” Dacyl Armendariz, an Instacart spokesperson, said last month, according to a report from the Financial Times.
The Aldi delivery service will start off in Los Angeles, Atlanta, and Dallas later this month, but hopes to expand in the future, although no plans to open the service up to other cities have been announced just yet.
Aldi began as a European chain but has actually been operating in the U.S. for the past 40 years. There are currently 1,700 Aldi stores in the U.S., however, back in June, the company announced that it will invest $5 billion dollars to open 2,500 more stores by the end of 2022, in the hopes of the becoming the third largest grocery store chain in the country. Meanwhile, Lidl, another discount supermarket chain of European origin, announced in February that it will open 100 stores on the East Coast by the end of 2018.
This isn’t the first time that Aldi has declared war on massive grocery store corporations: This spring, the chain began undercutting notoriously cheap Walmart prices. “Aldi is disrupting the sector the way Wal-Mart did when they started,” a retail consultant told Reuters at the time. Aldi, Lidl, and Trader Joe's all sell large stocks of store-brand supplies, an approach that's also being attempted online with the new Brandless store, where everything sells for $3.
Although 90% of Aldi products are indeed store brands, ensuring low prices, the new service doesn't guarantee the company will prove a worthy opponent of Amazon in the delivery field. The online superstore recently began rolling out its own food brands, so when it comes to groceries, don't expect Amazon to go out of business anytime soon.