Currently, Instacart is a great solution as it allows us to get our groceries delivered at home in as little as one hour. Now, is it really making the brand's path to the consumer more efficient? Many large CPG companies feel the current route to market is very inefficient as there are too many layers (distributor, warehouse, retailer, etc.) between the product and the consumer. Thus, the problem with Instacart is that it’s an additional layer to an already complicated RTM. Many companies such as Amazon and Boxed are redesigning the route. Additionally, CPG companies are also trying new ways to get the product into people’s hands in the most efficient way possible.
The outcome of all these RTM improvements could impact Instacart's future.
This is certainly an interesting move by both Walmart and Shopify as a step to growing share in e-commerce. Walmart has already been successful at gaining share in food and beverage mostly due to pickup, which is a great competitive advantage for them vs Amazon. It's going to he interesting to see how far this partnership takes both Walmart and Shopify.