Heinen’s breaks ties with Instacart

Midwest supermarket operator Heinen’s said it will stop using Instacart’s shopping and delivery services, effective February 22.

The Warrensville Heights, Ohio-based grocer, which operates 19 Ohio and four Illinois stores, said it will instead have trained Heinen’s associates fulfill online ordering by picking and packing groceries.

Heinen’s also will be offering free curbside pickup and in conjunction with the switch is introducing a new mobile app and upgrading its shop.heinens.com shopping platform.

Alcohol and catering will be available for delivery or curbside pickup at most stores, the retailer said.

Heinen’s did not respond to a request for additional comments.

In a statement to Supermarket News, meanwhile, an Instacart spokesperson said the San Francisco-based operator is “proud of the success” it has achieved in providing delivery services to Heinen’s customers since 2018.

“While we will be sunsetting our partnership as of February 21, we look forward to expanding and deepening our partnerships with beloved local retailers across the Midwest region, including Aldi, Meijer and Fresh Time, to build the best e-commerce and delivery experience possible for their customers,” the spokesperson said.

The ending of its partnership with Heinen’s is another episode in what is shaping up as a roller coast 2023 for Instacart.

Earlier this year, Instacart reportedly cut its valuation to about $10 billion, which is 20% lower than in October and nearly 75% lower than early last year when it was valued at $39 billion.

In addition, Instacart last October reportedly postponed its planned IPO to likely 2023 because of tumultuous markets.

Most recently, Instacart took steps to makes its operation more appealing to its community of independent contractorswho shop and deliver groceries by enabling the workers to accept another shopping batch before completing their current order.

Instacart also is enabling the individuals to add separate orders from nearby retailers in addition to the order they are currently fulfilling.

Instacart provides its services to more than 900 retail banners and over 75,000 retail locations.