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Instacart Will Stop Delivering Groceries From Amazon’s Whole Foods

InstaCart employees fulfill orders for delivery at the new Whole Foods Market Inc. store in downtown Los Angeles, California, U.S., on Monday, Nov. 9, 2015. Located beneath the recently opened Eighth & Grand residences, the 41,000-square-foot store features a juice bar, fresh poke, expanded vegan options in all departments, a coffee bar (with cold brew on tap), more than 1,000 hand-picked wines, home delivery via Instacart and bar-restaurant The Eight Bar.Photographer: Bloomberg/Bloomberg

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By Ellen Huet

December 13, 2018 at 5:30 PM UTC

Updated on

December 13, 2018 at 9:33 PM UTC

This article is for subscribers only.

In 2014, when Instacart Inc. was a younger grocery-delivery startup, Whole Foods was its first major relationship—Instacart’s debut national retail partner and an investor as well. A lot has changed since then. Amazon.com Inc. now owns Whole Foods and runs its own delivery service. So the startup and grocery chain are splitting up for good.

Starting Thursday, Instacart said it will begin separating itself from Whole Foods and eventually no longer let its customers order from the Amazon-owned grocer through its app or website, the company said. The 1,415 part-time employees that Instacart hires to pick and pack grocery orders inside some Whole Foods stores will also be given the option in the coming months to transfer to another store or leave their jobs, with either a transfer bonus or severance pay, Instacart said.