Target Teams With Instacart to Challenge Amazon on Groceries
- Instacart's grocery delivery fee starts at $3.99 per order
- Most customers pay $299 a year for Amazon Fresh delivery
Why Target Is Targeting the Online Grocery Business
This article is for subscribers only.
Target Corp. is teaming up with Instacart Inc. to offer same-day delivery of groceries and household items for $3.99 in its hometown of Minneapolis as the big-box retailer rolls out an alternative to Amazon.com Inc.’s $299-a-year Amazon Fresh grocery delivery service.
Target will be Instacart’s second-largest retail partner by revenue, behind Costco Wholesale Corp., significantly expanding inventory for the San Francisco-based startup as it positions itself as the antidote to Amazon for brick-and-mortar retailers. Instacart delivery charges start at $3.99 per order, depending on its size.