There are many companies out there running grocery delivery services, eliminating the need for people to go out on their own when they can just as easily get fresh groceries through a mobile app. Amazon is doing it and so is Google, and now Target is getting in the game as well. The retailer has teamed up with Instacart, an established grocery delivery startup, for a pilot program in its hometown of Minneapolis, Minnesota.
Target will allow customers in select areas of Minneapolis to order from two local Target outlets, they will be able to order items from the store’s full stock of groceries, home supplies and other essentials like baby products and pet food. For $3.99 Target will deliver the order on the same day, that’s the lowest delivery fee that Instacart charges.
The retailer already brings in a significant amount of its revenue from selling groceries, 20 percent of revenue last year came from its grocery department so one can see why Target thinks that it can establish a footing in the country’s online grocery market which is expected to grow by 9.6 percent every year.
Instacart isn’t exclusively offering its service to Target though, it’s doing the same for companies like Costco, Safeway and Whole Foods, all of which are trying to break into this market where Amazon is already an established figure.