retail news in context, analysis with attitude

The Boston Business Journal reports that Instacart, the food delivery service, is testing a partnership with Petco in the Boston and San Francisco markets that has it providing same-day delivery of pet food.

According to the story, "The cost for delivery of groceries and pet food is $3.99 for orders above $35 with more than two hours lead time."

Instacart has been providing personal grocery shopping services in a wide variety of markets, partnering with chains such as Whole Foods and Costco and up-charging, in most cases, for the items ordered. The company has gotten some $275 million in venture capital finding as it has grown.
KC's View:
While I remain skeptical about Instacart's long-term sustainability as a business model, I think this is a good idea for Petco ... nothing shouts "e-commerce!" like a 40 pound bag of dog food.

It is interesting to watch as Instacart seems to be shifting its revenue model a bit, moving from up-charging for the products it delivers to a fee-based system.