Kroger Co. and Instacart unveiled a new home-delivery service in which the companies will drop off food and household staples in as little as 30 minutes.
The offering, called Kroger Delivery Now, will reach as many as 50 million households across the U.S., the companies said in a statement Tuesday. The service will be available through Kroger’s website and app, as well as a new “Convenience Hub” on Instacart.
The new delivery option steps up Kroger’s push to expand its e-commerce footprint in groceries amid pressure from Walmart Inc. and Amazon.com Inc. Kroger Chief Executive Officer Rodney McMullen emphasized the importance of the new service’s “convenience and immediacy” for customers of the largest traditional U.S. supermarket chain.
“Kroger Delivery Now’s comprehensive offering of 25,000 items combines customer favorites with quick and easy doorstep delivery—whether they’re shopping for a meal, snack, last-minute ingredient, over-the-counter medication or diapers,” the companies said in the statement.
Kroger previously reached a deal with U.K. online grocer Ocado Group Plc to create automated warehouses in the U.S., designed for efficient delivery of larger orders than the convenience-focused Instacart pact.
Kroger shares were down 1.1% to $42.40 at 9:53 a.m. in New York. The stock is up 33% this year, ahead of a 19% gain for the S&P 500 index.
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