Austin, TX–Whole Foods Market will no longer be working with Instacart, according to the Wall Street Journal (WSJ).
Forbes says that the partnership had been on shaky ground since Amazon acquired Whole Foods in 2017. In 2016, Whole Foods and Instacart had announced a five-year delivery partnership, but Amazon has been expanding its Prime Now services to allow customers to order from Whole Foods through Prime. Forbes quotes Apoorva Mehta, CEO of Instacart, as saying, “Whole Foods Market has been a partner of ours since 2014, but our relationship is now beginning to wind down.”
On Thursday, the WSJ says, Instacart announced that it would cease deliveries from the 76 Whole Foods locations with which Instacart is partnered beginning on February 10. Forbes reports that 243 shoppers will be impacted on that date, and the rest of the shutdowns will roll out over the course of 2019, although Instacart declined to provide an exact date on which Whole Foods delivery will no longer be available.
According to USA Today, 75% of the 1,415 Instacart employees who deliver from Whole Foods will be transferred to other locations. The remaining 25%, around 350 people, will be laid off and will receive three-month separation packages as well as tenure-based compensation.
USA Today quotes Mehta as saying, “For our in-store Whole Foods shoppers who are personally impacted by this news, we’re deeply committed to being transparent about what this means for you and plan to share any updates with you as they become available.”