The Amazon-Whole Foods Deal Is Turning Out to Be Good for Delivery Startups
- Industry response to Amazon’s takeover has fueled growth
- Shipt expects $1 billion in revenue as food sales move online
Shipt has pushed into 22 new markets as grocery chains turn to third-party delivery services to make sure they’re ready as more customers experiment with buying food online.
Photographer: Gustavo Caballero/Getty Images
When Amazon.com Inc. acquired Whole Foods as part of its attack on the supermarket industry, it looked like a crushing blow for grocery-delivery startups like Shipt Inc. and Instacart Inc.
If consumers could get their food from Amazon, why would they need a separate delivery service? But rather than make the startups obsolete, the Whole Foods deal helped raise their profile. Grocery chains across the U.S. have enlisted the two companies to help them set up delivery operations, viewing them as key allies in the defense against Amazon.