Insights

Kroger Launches In-house Delivery Service to Compete with Amazon

Kroger-Ship

Kroger, the largest supermarket chain in the US, has launched a grocery delivery service in an attempt to compete with other big retailers. Kroger Ship is now available in Cincinnati, Houston, Louisville, and Nashville, and will likely be focused on delivering groceries to customers quickly and efficiently. The grocery chain noted that Kroger Ship will be added “to additional markets over the next few months.”

Kroger is currently utilizing Instacart for their grocery deliveries, which creates costs for both the customer and the retailer. In contrast, Kroger Ship will allow shoppers to browse and pay online and receive free delivery on orders over $35. For a small order, customers can pay a $4.99 fee, and first-time customers get free shipping on any order, coupled with a 15% off coupon.

Because the market has high potential and is rapidly growing, competition in the grocery delivery space is fierce. Amazon offers a host of delivery options and benefits to Prime Members on orders from Whole Foods Market, which has previously been noted to be cheaper than Kroger with Instacart delivery. Target announced plans to acquire Shipt last December, and quickly began offering same-day delivery on grocery and household products. Walmart offers delivery as well, and with a handful of delivery partners (including Uber), has announced plans to expand its grocery delivery platform to over 800 stores by the end of the year.