Business Insider writes that as Kroger builds "its own tech infrastructure, including automated warehouses for delivery orders," it means that it inevitably will end up "in competition with Instacart, its longtime grocery-delivery partner, analysts say." This competition may also play out as both companies seek advertising revenue from suppliers - there are only so many dollars to go around, and Kroger will be making the argument that they are better spent with it than with the various retailers with which Instacart does business.
Context from the story:
"Kroger still offers delivery through Instacart. But increasingly, Kroger's technology initiatives, such as its partnership with Ocado for pickup and delivery orders, do the same things Instacart does.
"Instacart, meanwhile, is trying to provide grocers with technology other than delivery as it looks for new revenue. For now, analysts said, Kroger and Instacart will continue to work together."
And, they say, will continue to as long as Kroger sees the relationship as being its best interests.
- KC's View:
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In some ways, this could be part of the explanation for why Instacart is acquiring Rosie, which has a greater footprint among independent grocers. As bigger companies look to dislodge themselves from their relationship with Instacart - largely because they have the resources to do so, and want to be more proprietary in their offering - Instacart/Rosie is likely to find an even more receptive audience with smaller retailers without those resources.
