Target tests grocery delivery service

A Target executive told suppliers last month that the retailer would be testing a grocery delivery service in the very near future, but did not offer any details then.

Target will be Instacart’s second-largest retail partner by revenue, behind Costco Wholesale, significantly expanding the San Francisco-based delivery startup’s inventory as it positions itself as the antidote to Amazon for brick-and-mortar retailers.

Instacart’s initial delivery area in Minneapolis covers the metro area including: Downtown, Dinkytown, University of Minnesota Campus, Edina, St. Louis Park, Uptown, Richfield, and Hopkins.

No Costco membership is required.

Its expansion to the Twin Cities hasn’t exactly been a well-kept secret, but grocery delivery service Instacart confirmed this morning that not only is it coming to the region but that it’s open for business starting today. Neither company announced when they expect the Instacart/Target partnership to debut in other markets. Justin’s, maker of naturally delicious nut butters and organic peanut butter cups, is sampling its new Maple Almond Snack Pack.

The service runs through the Instacart app or the Instacart website. In Minneapolis the delivery is free for the first Instacart order and subsequent deliveries will cost $3.99 for a two-hour delivery on orders of $35 or more. The most visible example has been Amazon, which has been aggressively rolling out its Prime Now service, which offers two-hour delivery on some grocery items.

There are many companies out there running grocery delivery services, eliminating the need for people to go out on their own when they can just as easily get fresh groceries through a mobile app. Amazon is doing it and so is Google, and now Target is getting in the game as well.

Instacart’s other retail partners include Whole Foods Market Inc, Petco Animal Supplies Inc and local supermarkets in 18 metropolitan areas including Miami, Seattle and New York.

“The fundamental truth is that customers are time starved”, he said.

The grocery delivery fees will start through Instacart at $3.99.