Walmart, Instacart partner for same-day U.S. delivery

Walmart will partner with Instacart to offer same-day delivery in U.S. markets. Yahoo Finance’s On The Move panel share the details.

Video Transcript

ADAM SHAPIRO: Into something that is going to raise eyebrows over at Amazon-- Walmart is teaming up with Instacart to compete with Amazon in grocery delivery. And Julie, you know, long time in coming. Where they been, right?

JULIE HYMAN: Well, Walmart's actually been pretty out front on the so-called Click and Collect-- in other words, people ordering online and picking up in-store. That has been very popular and very successful for Walmart, so this seems like the next logical step. I'm not sure if they already had delivery to some extent of some of those fresh items. I believe they might have. It's the partnership with Instacart specifically that's new. And we should mention, this is a pilot phase. It's not yet fully rolled out. It's going to be in four markets in California and Oklahoma.

But definitely, this is sort of a shot across the bow because-- you know, when Amazon bought Whole Foods, there was this whole thesis that they were going to use these as their fresh food fulfillment centers, right? And Amazon has not quite delivered on that promise of doing that in an efficient way. Walmart has actually managed the sort of, again, online ordering pickup in store-- the grocery part of the equation, one could argue-- better than Amazon has. So this could be, indeed, a real threat to Amazon's fresh food and grocery business, specifically.

AKIKO FUJITA: And also let's talk about the Instacart part of it because they've got a lot of partners in place. They've already been partnering with Kroger. They've had partnership with Costco as well, smaller businesses. Now you add Walmart to that equation. I mean, that's a pretty big sort of-- a big print here, a footprint for the company to be able to compete with somebody like Amazon.

Now, I was thinking back to when I read this how a few weeks ago we were talking about Jeff Bezos saying, look, we've got plenty of competition in the grocery space as well. He talked about online shopping with Shopify. He also mentioned Instacart. So I guess it's a mixed blessing for Amazon. They obviously have the ammunition to be able to compete, but this is just another added competitor here that is really building out their footprint.

ADAM SHAPIRO: OK.