Hy-Vee Expands Partnership With Instacart

Retailer leveraging FaaS tech to optimize same-day delivery

2/8/2024

Hy-Vee is now leveraging the FaaS solution from Instacart to create better e-commerce efficiencies and experiences.

To enhance the e-commerce experience for consumers and improve its own efficiencies, Midwest grocer Hy-Vee, Inc. is expanding its partnership with Instacart.

Through this update, Hy-Vee will now use Instacart’s Fulfillment as a Service (FaaS) solution, integrating fulfillment capabilities for same-day delivery into its owned and operated websites and apps. Another technology partner, Upshop, facilitated the integration of FaaS into Hy-Vee’s e-commerce operations.

Hy-Vee has offered delivery through the Instacart app since 2018. The retailer accepts EBT SNAP payments via the Instacart app, too.

“We’re proud to strengthen our partnership with Hy-Vee and equip them with the technology and tools they need to meet customers’ needs," said Ryan Hamburger, VP of retail partnerships at Instacart. "Our goal is to empower our partners and offer seamless and personalized shopping experiences. We’ve spent more than a decade focusing on the care and craft of grocery and are continuing to push the envelope by creating even more fulfillment solutions that help our retail partners grow and meet the evolving needs of their customers and businesses.”

Hy-Vee has been steadily scaling up its grocery tech capabilities. Last fall, Hy-Vee launched its own retail media network, RedMedia, to connect brands with Hy-Vee’s customer base across multiple platforms.

Meanwhile, Instacart also announced this week that it is adding Whole Foods Market to its app in Canada, with service available from all 14 of the grocer’s locations in Vancouver, Victoria, Toronto and Ottawa. According to Instacart, the partnership brings online grocery delivery to Whole Foods customers in Canada for the first time.

“We strive to create the best shopping experience for our customers both in stores and online, including finding ways to provide convenience without sacrificing quality,” said Rick Bonin, SVP of operations at Whole Foods Market. “We're excited to work with Instacart in Canada to provide our shoppers with a quick and easy way to get their favorite high-quality foods and products delivered directly to their doorstep.”

Instacart works with more than 1,400 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 80,000 stores across North America on the Instacart Marketplace. Employee-owned Hy-Vee operates more than 550 business units across eight Midwestern states, with sales of more than $13 billion annually. The West Des Moines, Iowa-based company has a team of more than 75,000 employees and is No. 36 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named Hy-Vee a 2023 Top Regional. Austin, Texas-based Whole Foods has more than 500 stores in the United States, Canada and the United Kingdom. The company is a wholly owned subsidiary of Seattle-based Amazon, which is No. 2 on The PG 100.