Retail Media

Instacart and Gopuff Partner on 15-Minute Delivery and Retail Media

Instacart and Gopuff announced a partnership bringing 15-minute delivery to Instacart's marketplace and extending Carrot Ads, opening Gopuff's storefront to more than 9,000 Instacart advertisers.

Instacart and Gopuff Partner on 15-Minute Delivery and Retail Media
Instacart and Gopuff Partner on 15-Minute Delivery and Retail MediaBilly Wilson Photography / Openverse

Instacart and Gopuff have struck a partnership that brings Gopuff's grocery and convenience assortment to the Instacart marketplace while extending Instacart's advertising technology to Gopuff's platform.

Under the agreement announced Tuesday, Gopuff will join the Instacart marketplace in the U.S., allowing Instacart customers to order groceries, snacks, beverages, household products and other everyday items from Gopuff.

Gopuff will handle fulfillment and delivery through its network of micro-fulfillment centers and delivery infrastructure. The companies said some orders could arrive in as little as 15 minutes. Gopuff operates 365 days a year, offers 24-hour delivery in some markets and provides late-night delivery across much of its network.

The companies did not give a launch date, saying only that the service will go live soon.

The deal builds on an existing relationship. BevMo!, the specialty beverage retailer owned by Gopuff, already sells through Instacart.

The retail media component may carry the most weight for marketers. Gopuff will use Instacart's Carrot Ads technology to run advertising on its digital storefront. Instacart said more than 9,000 advertisers on its advertising platform will be able to extend campaigns to Gopuff and BevMo! customers. Advertisers will also be able to run campaigns specifically on Gopuff's storefront through Instacart.

Instacart has increasingly pushed beyond its core grocery delivery marketplace by selling technology and advertising services to retailers. More than 310 partners currently use its Carrot Ads platform, which lets retailers and other commerce companies run advertising programs across their own websites and apps, according to the company.

Gopuff will keep operating Gopuff Ads, its in-house business that works directly with brands on advertising, sampling and other marketing programs.

The arrangement gives each company added reach in the growing immediate-delivery market. Instacart gains Gopuff's inventory and fulfillment network without sending Instacart shoppers to handle deliveries. Gopuff gets its assortment in front of Instacart customers plus access to Instacart's advertiser base.

For brands, the deal effectively consolidates two ad inventories under one buying platform — a signal of how quickly retail media consolidation is reshaping where convenience and grocery marketers spend.

Source: Supermarket News

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Tom Whitfield

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Staff writer covering industry trends and analytics at Target Marketing.

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