Instacart is quietly exploring the launch of micro-fulfilment centres
US grocery delivery service Instacart is reportedly looking into the use of robotic warehouses to fulfil its orders.
It currently uses more than 500,000 gig workers for this.
According to a FT article, citing several people familiar with discussions, Instacart has initially expressed a desire to open as many as 50 micro-fulfilment centres across the US in about a year.
The company told the FT: “While we have no updates to share today, we’re constantly evaluating our services in deep partnership with the nearly 600 retailers we work with.”
It added: “Our entire product and model is predicated on being a chief ally to our retail partners.”
“We’re committed to supporting our bricks and mortar partners and continuing to invest in and explore new tools and technologies that support the needs of their customers and further enable their businesses to grow and scale over the long-term.”
Going it alone
Supply chain consultant, Brittain Ladd, believes that grocery retailers are becoming increasingly concerned about Instacart being part of their business strategy.
”Instacart should go public in 2021 and invest in logistics and fulfilment,” he says.
“It should become an online grocery retailer selling direct to consumers, end the relationship with its grocery retail customers, and open physical stores to complement its online business model.”
He adds: “I strongly recommend that it enter into an agreement with AutoStore to power its micro-fulfilment centres.”
Ladd concludes: “Instacart’s value as a company will increase significantly if it becomes an online grocery retailer vs. maintaining the status quo.”
“The executive team understands this which is why quietly behind the scenes, they’ve been exploring MFCs.”
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