Reuters reports that Sprouts Farmers Market is ending its relationship with Amazon, which used Prime Now as a delivery mechanism, and will instead expand on its deal with Instacart to provide delivery services.
The Sprouts-Amazon deal predates Amazon’s acquisition of Whole Foods, which is a direct competitor to Sprouts.
The Sprouts-Amazon deal predates Amazon’s acquisition of Whole Foods, which is a direct competitor to Sprouts.
- KC's View:
-
I would always argue against partnering with Amazon - there always is a danger when you get into bed with the enemy. But I’m not sure that doing business with Instacart is any safer … Instacart a) wants to be a powerful delivery brand, as opposed to just serving the brands of the companies with which it does business, and b) also is doing business with competitive retailers.
All of these deals should be seen as stopgap measures while companies figure out their own proprietary approaches, or just identify partners that are interested in serving their brands.
