Same day delivery is becoming table stakes for retailers to meet consumer wants for on-demand convenience and immediacy. As the follow article from The Spoon reports, Sam’s Club is partnering with Instacart to offer the speedy service across the U.S.
Warehouse chain Sam’s Club announced today that it is expanding its partnership with Instacart to bring same day delivery to more than half of all Sam’s Clubs across the country by the end of this month.
According to the press announcement, Sam’s Club grocery delivery via Instacart will be available from roughly 350 stores by the end of October, up from the current 238. The two companies launched their partnership in February of this year with 61 clubs.
In addition to groceries, customers can also get gifts and small appliances delivered through Instacart in as fast as an hour.
A lot has changed since the start of the year for both Sam’s Club and Instacart. In January, Sam’s Club abruptly shut down 63 of its stores. But while Sam’s Club shrank, Instacart has grown, raising nearly a billion dollars in new funding ($600 million of which was just this week!).
Just as restaurants rely on immediate delivery, other merchants are discovering that this is a necessary service. This doesn’t come cheaply since last mile logistics are the most expensive part of the delivery. But retailers like Sam’s Club know that their customers want it and can easily jump to a competitor. Delivery services like Instacart are the winners as they thrive on scale and volume that enhance the cost effectiveness of their networks. Watch for more immediate delivery services coming to a neighborhood near you.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group