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  • Amazon’s purchase of Whole Foods sent shockwaves through the grocery industry, and now competitors are bulking up on competitiveness in order to stand out.
  • Sprouts Farmers Market, a $3 billion natural grocery chain, has teamed up with Instacart, which already powers delivery for other local-area chains like Whole Foods, Costco, Safeway, and CVS.

Sprouts Farmer’s Markets, one of the largest natural grocery chains in the US, announced Tuesday that it has inked a deal with courier startup Instacart to power its home grocery delivery, sending its stock soaring 5% ahead of the opening bell.

The service will begin in the Phoenix and Tuscon, Arizona areas, and later expand to other large Sprouts markets which have yet to be announced.

Instacart, which is based in San Francisco, was most recently valued at $3.4 billion in March 2017. The company already powers delivery for other large chains in Arizona, including CVS, Whole Foods, Costco, and CVS Pharmacy, according to its website. The service is also available in the large metros like New York City, Los Angeles, Chicago, San Francisco and more. Sprouts is notably absent from the East Coast, with most of its 280 stores in the West.

“We are excited to respond to customer demand for fast, convenient home delivery of their favorite Sprouts products in all of our major markets across the country,” Sprouts chief executive officer Amin Maredia, said in a press release. “Home delivery is a natural way for Sprouts to engage with our customers on their healthy living journey, and our partnership with Instacart allows us to quickly scale for growth.”

Many delivery services have closed shop in recent years after having trouble turning a profit. Amazon in November scaled back its Fresh grocery delivery service across large swaths of the US east coast. Other startups, like Read More Here