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Target to Drop Instacart in Wake of Shipt Acquisition

Target to Drop Instacart in Wake of Shipt Acquisition

MINNEAPOLIS, MN - Target is backing away from its partnership with Instacart, now that it has acquired its own delivery arm through Shipt. As we reported previously, the retailer acquired Shipt for $550 million last month.

Eddie Baeb, Senior Manager of Communications/PR, Target"We want to offer a great experience through Shipt," Target’s Senior Manager of Communications/PR, Eddie Baeb, said, according to the StarTribune. "So obviously that's where we're going to focus going forward."

While he confirmed plans to exit its Instacart partnership, Baeb told the news source that there is no set timeline when delivery via Instacart from Target stores will end. Currently, the service is offered in Twin Cities, Chicago, and San Francisco.

As for Instacart, while the company declined to comment at the time of the article, a source familiar with the matter told StarTribune that Target's Instacart business in those three markets account for less than 1 percent of the delivery company’s entire volume.

Target with Instacart

Instacart’s partners also include Costco, Whole Foods, and Cub Foods, among others.

What other effects will Target’s latest acquisition have on its operations, and the rest of our industry? AndNowUKnow will continue to report.