HEB said yesterday that it is going to split its San Antonio grocery delivery business between two companies - Shipt and Instacart, and that it will launch there later this month "with plans to expand to Houston, Austin, Dallas and more markets this year."
The services will deliver groceries from both HEB and its Central Market stores.
According to the San Antonio Express-News, "Shipt’s coverage area will span downtown and most near-downtown neighborhoods, as well as nearly all of the North Side. Smith said the coverage is based on demand and will likely expand. Instacart will offer service to large swaths of the central North Side and the Northeast Side, but not in downtown or farther south."
The Express-News notes that "the company has been expanding its online presence over the last few years — since November, it has made 50,000 products available on its website for shipment in Texas and to 48 other states and U.S. military bases worldwide."
The services will deliver groceries from both HEB and its Central Market stores.
According to the San Antonio Express-News, "Shipt’s coverage area will span downtown and most near-downtown neighborhoods, as well as nearly all of the North Side. Smith said the coverage is based on demand and will likely expand. Instacart will offer service to large swaths of the central North Side and the Northeast Side, but not in downtown or farther south."
The Express-News notes that "the company has been expanding its online presence over the last few years — since November, it has made 50,000 products available on its website for shipment in Texas and to 48 other states and U.S. military bases worldwide."
- KC's View:
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I remain convinced that this is a short-term way for HEB to get into the delivery business, and that the company will continue to look for ways that it can supplant both outsourced options with something more proprietary. I'm not surprised that HEB would use both Instacart and Shipt - it gives it a lot more leverage with Instacart, which could've shopped its stores even without a formal agreement. And now it can learn from both models and figure out what the strengths and weaknesses are.
