On June 16, the day Amazon announced it would acquire Austin-based Whole Foods Market, Instacart CEO Apoorva Mehta called a company-wide meeting from Instacart’s headquarters in San Francisco.
Mehta wanted employees to know it was not time to panic, as some grocery stakeholders were doing throughout the country that day, said Instacart senior regional director Sean Twersky.
Instead, “He said, ‘This day is now proving something we have believed in at all times: That you have to have some form of grocery e-commerce because consumers demand it,’” Twersky said. “Those conversations we were having before, there was more urgency to have them now.”
The assumption from many industry analysts and consumers was that Instacart and other on-demand grocery delivery services would suffer as a result of the Amazon-Whole Foods merger. By adding the Whole Foods brand and its roughly 470 stores, the logic went, Amazon could take over the grocery delivery industry, devastating companies such as Instacart and wiping out smaller operations.
But in the six months since the deal was made, companies that deliver groceries have maneuvered to not only survive Amazon and Whole Foods’ threat, but to also forge a future in the food delivery industry.
To read the full story, visit 512tech.com.