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January 27, 2021

Walmart Scaling its Automated Fulfillment with Alert Innovation, Dematic and Fabric

Walmart announced today that it is ramping up its use of automated centers to fulfill online grocery orders. The company said it is already planning “dozens” of locations with “many more to come.”

Automated fulfillment centers use robotics to assemble items for incoming orders. The result is a faster turnaround for customer delivery or pickup.

According to a corporate blog post announcing the news:

[Walmart will] be building local fulfillment centers with various technology partners, including Alert Innovation, Dematic and Fabric. With these partners, we’ll be testing different orientations and add-on innovations to understand what works best in different environments. For example, in some locations, we’ll be adding on to our stores. In others, the fulfillment centers will sit inside the existing store footprint.

At its Salem, New Hampshire location, Walmart had piloted Alert Innovation’s automated fulfillment technology back in 2019. Walmart didn’t explain why has chosen three different solutions going forward, though if the retailer is going all-in on automated fulfillment, one company may not have been able to scale up quickly enough. We do know that Fabric specializes in building automated fulfillment centers in small, non-traditional spaces, and Walmart said its rollout would test different automated fulfillment configurations.

After a slow burn for the past few years, automated fulfillment is becoming hot with grocers in 2021. FreshDirect is also using Fabric’s solution for a fulfillment center in the Washington D.C. area. Albertsons is expanding its use of Takeoff Technology’s micro-fulfillment. Dematic is being used in Amazon’s grocery stores. H-E-B is using Swisslog. And Kroger is set to open up the first of its planned 20 automated customer fulfillment centers this year.

The reason for this burst in robotic fulfillment activity is the pandemic. COVID-19-related fears pushed people into record amounts of online grocery shopping last year. While a vaccine is being deployed, people have developed new habits, and online grocery shopping is expected to take up 21.5 percent of total grocery sales by 2025.

As such, retailers need to increase their throughput now to retain customer loyalty. Faster turnaround means more slots available for curbside pickup and delivery. Walmart may not have found inventory counting robots on its floors particularly efficient, but it seems to believe robots in the backroom building out orders is.

January 22, 2021

Podcast: The Future Grocery Store

While I may have missed my annual sojourn to sin city for CES this year, I may soon be able to get something akin to walking the Vegas strip just by heading on down to my local grocery store.

That’s because, at least according to The Spoon’s Chris Albrecht, grocery stores will soon resemble the floor of a casino with all the screens that will show up there in the future. Whether it’s smart carts with a touch screen or digital displays up and down the aisles, we can expect lots more digital signage and screens in our lives as shopping becomes more connected and digitized in the future.

And, as I say on this week’s editor podcast, I’m totally on board with more tech in the corner store as long as it includes bread-making robots filling up the aisles with the smell of fresh-baked loaves.

In addition to talking about smart grocery carts this week, we also discuss:

  • Dragontail Systems and Pizza Hut Deploy Pizza Delivery Drones in Israel
  • Controlled Ag Company AppHarvest’s First-Ever Crop Arrives at Grocery Stores This Week
  • BlueNalu Secures $60M for Production of Cell-Based Seafood
  • Spanish Government Funds BioTech Foods’ Cultured Meat Project

As always, you can check out the Food Tech Show on Spotify, Apple Podcasts or Soundcloud, or just click play below.

The Spoon · Are We Ready for Smart Grocery Carts?

January 22, 2021

Instacart Expands Curbside Pickup Options for Retailers

Grocery fulfillment service, Instacart, announced this week it is expanding curbside pickup options for its retail partners.

Instacart currently provides curbside pickup services for more than 60 retailers, including ALDI, Food Lion, Publix, and starting this week, three Costcos in New Mexico. Instacart’s curbside pickup is available in more than 3,300 stores across 30 states today.

In its announcement, Instacart outlined the new order fulfillment and curbside pickup options for its retailers:

  • Partner Pick – Retailers use their own employees to pack and fulfill orders that come in through customized Instacart Pickup software
  • Instacart In-Store Shopper Pick – Instacart in-store Shoppers will pick and pack grocery orders for pickup
  • Full-Service – A new pilot program at select retailers where full-service Instacart Shoppers will be able to choose orders to pick, pack and stage for pickup or delivery

Last year, the pandemic pushed record number of shoppers into online grocery shopping, accelerating the need for more delivery and curbside pickup options. Even after the pandemic recedes, online grocery shopping is expected to grow and take up 21.5 percent of total grocery sales by 2025.

Curbside pickup is an attractive option for both retailers and shoppers. For retailers, it only requires setting up designated pickup areas in their parking lot and letting customers come to them. And for shoppers, the pickup option can be more convenient, fitting into their regular errand schedule and not requiring them to stay at home to wait for a delivery driver.

As such, retailers are implementing a number of different ways to get customers their pickup orders more efficiently. Albertsons, for instance, has made a number of moves including the use of robots to automate online order fulfillment at some stores, as well as trialing an automated pickup kiosk and temperature controlled pickup lockers.

With Instacart’s news this week, retailers who can’t afford fancy robotics to fulfill orders will be able to use their own employees to pick and pack, or leverage Instacart’s scalable gig workforce to do so.

It wasn’t all good news from Instacart, however. With some retailers using their own workforce for packing orders, Instacart also announced it would be laying off 2,000 employees, including it’s only unionized labor group.

January 21, 2021

Imperfect Foods Raises a $95M Series D Round

Imperfect Foods, a national online grocer that specializes in selling surplus and cosmetically “imperfect” foods, announced today that it has raised a $95 million Series D round of funding. The round was led by Insight Partners and brings Imperfect’s total amount of funding to $214.1 million.

Imperfect Foods (formerly Imperfect Produce) aims to reduce waste in our current food system by “rescuing” so-called ugly foods — think misshapen carrots or potatoes — and selling them directly to consumers at a discounted prices. Without these rescues, such food would go straight to the landfill, further contributing to the world’s multibillion food waste problem.

In 2020, Imperfect transitioned from a regional produce delivery service into a national full-service grocer, expanding its catalog to include pantry items, meat, seafood, dairy and other products. Items sold are surplus, cosmetically imperfect, or sourced from sustainable partners. Some examples from last year include buying up allotments of cheese plates going unused by airlines and popcorn kernels from empty movie theaters. Imperfect also released a holiday snack box at the end of 2020 that featured cosmetically imperfect but otherwise perfectly edible snack items.

Imperfect said in today’s press announcement that it has a growing customers subscriber base of more than 350,000 customers. But it’s not alone in the “ugly” food space. Misfits Market, which does much the same thing, has raised more than $100 million in funding.

That money is flowing into Imperfect and Misfits is not too much of a surprise. The global pandemic pushed record numbers of people into online shopping. Even though vaccines are now out, and we may be seeing the pandemic recede, grocery e-commerce is projected to remain sticky with consumers and grow to gobble up 21.5 percent of overall grocery spending by 2025. So having an established grocery delivery infrastructure right now is far from an imperfect business idea.

January 21, 2021

Stor.AI’s Software Now Allows Grocers to Accept SNAP Payments Online

Stor.AI (formerly Self Point), which makes digital commerce software for grocery stores, announced a new feature this week that allows stores of any size to accept online payment for Supplemental Nutrition Assistant Program (SNAP) participants.

The new capability allows stores to accept payments through Electronic Benefits Transfer (EBT) payment cards, split payments across multiple methods, and add virtual tags to an online store showing which items are EBT-eligible.

Up until a couple years ago, SNAP participants were unable to use their EBT card to shop for groceries online, exacerbating digital inequality. In 2018, a startup called All_ebt helped SNAP participants shop for groceries online through a combination of Facebook Messenger and Virtual Visa cards.

The U.S. government got involved in April of 2019, when the USDA launched a pilot program allowing SNAP participants to grocery shop online. That pilot involved a limited number of states and retailers like Amazon and Walmart.

When the pandemic hit the U.S. last year, people were encouraged to stay home and take fewer trips to the grocery store. The inability for SNAP participants to shop for groceries online and forcing them to shop in stores made the issue not just about inequality, but also safety.

Thankfully, SNAP-enabled shopping online got a big boost in 2020, with Kroger accepting SNAP for pickup, Amazon and Walmart expanding EBT payment acceptance across the country, and Instacart partnering with ALDI for grocery delivery to SNAP participants.

With today’s Stor.AI news, even more SNAP participants will be able to buy groceries online. Smaller, neighborhood stores of all shapes and sizes will now be able to accept EBT payments and serve more customers.

These moves, of course, don’t eliminate the inequalities present in our current food system. They are, however good steps towards bridging the digital divide and allowing more people to benefit from the modernization of grocery retail.

January 19, 2021

Kroger Using Smart Shopping Carts Powered by Caper

With the news last week that grocery giant, Kroger is using Caper’s technology, smart shopping carts are now officially a thing to watch out for.

Winsight Grocery Business broke the news last week that Kroger has quietly started testing its new “KroGo Powered by Caper” smart shopping carts at a store in Kroger’s hometown of Cincinnati, Ohio. The high-tech shopping carts feature a touchscreen, barcode scanner and scale that allow for a more automated checkout process.

Shoppers scan the barcode of items they place inside the cart, which automatically keeps track of everything being purchased (there are safeguards in place is a user tries to put something in without scanning it). Produce and other fresh items are weighed on the built-in scale on the cart. If an item is removed, the user manually deletes it from the running list on the touchscreen. KroGo users have a separate checkout station that communicates with the cart to automatically tally up the total bill shoppers pay.

Interest in this type of automated checkout has accelerated thanks to COVID-19 pandemic. Automated checkout removes the cashier from the grocery shopping experience, eliminating a vector of human-to-human interaction. This is particularly important when it comes to keeping the spread of germs in check, given how many different people a cashier interacts with on a daily basis.

But Caper Co-Founder and CEO, Lindon Gao, told me by phone this week that his company’s smart cart technology got a boost from another source: his competition. “Amazon Dash has really brought this concept more to the market,” Gao said, speaking of Amazon’s own smart cart tech, “It has validated what we have done all along.”

In addition to adapting to new pandemic realities and the shot of validation from Amazon, the retailers Caper are working with also want to enhance the shopper’s experience. And according to Gao, Caper’s built-in touchscreen on the cart does just that.

“The screen is the holy grail,” Gao said. That’s because shoppers don’t need to download an app in order to use the automated checkout. Everything is there on the cart. Additionally, Gao said that people most people don’t shop while looking at their phones, but the on-cart screen travels with them up and down the aisles.

The screen also provides new advertising and promotional real estate for the retailer. A store can advertise specials, upsell companion items (frozen pizza + ice cream!), and push out possible recipes based on what’s in the cart.

Moving automated checkout to the cart can also mean faster adoption by retailers. Other cashierless checkout solutions like those from Grabango and Zippin require stores to be retrofitted with cameras and sensors. That can take time and be costly, especially for larger stores. A retailer adopting smart carts just needs to deploy new carts and don’t require shoppers to download an app to make the automated checkout work.

As such, there are actually quite a few players in the smart cart space. In addition to Caper, Veeve, Storewide Active Intelligence, Tracxpoint, and Imagr, all have various takes on the technology coming to market.

Given all this activity, smart shopping carts are definitely a thing we’ll be watching out for this year.

January 13, 2021

Weezy Raises $20M Series A for Fast Grocery Delivery

UK-based speedy grocery delivery service Weezy has raised a $20 million Series A round of funding. TechCrunch was first to report the news, writing that the round was led by New York-based Left Lane Capital, with participation from DN Capital, existing investors Heartcore Capital and angel investors. Today’s funding announcement follows a $1 million pre-Seed round raised by Weezy in August of last year.

Weezy promises grocery delivery in as little as 15 minutes, thanks to its network of smaller fulfillment centers that are nestled within neighborhoods, closer to shoppers. Orders are then delivered via a network of its delivery people riding electric scooters or bicycles.

Weezy operates in London and will use the cash to expand to more neighborhoods in that city and across the U.K. As TechCrunch notes, the presence of a U.S.-based lead investor could indicate that a hop across the pond to the states could be in the offing.

Speedy European grocery delivery appears to be a sector that’s heating up for venture capital. Last month, Germany-based Gorillas raised $44 million for its similar, smaller fulfillment center approach to grocery delivery.

Here in the U.S. we see companies such as Fabric building out small automated grocery fulfillment centers and DoorDash building out a network of dark convenience stores that are delivery only.

It’s no wonder that money is flowing into online grocery services. The pandemic pushed record amounts of people into e-grocery shopping last year. With the virus still raging across the globe and subsequent lockdowns, online grocery shopping remains sticky with consumers, who are now habituated to new purchasing behaviors.

January 12, 2021

Walmart to Test Grocery Delivery to Smart Home Lockers

Walmart announced today that it will start testing grocery delivery to smart lockers that sit outside a person’s home. The pilot program will begin this Spring in Bentonville, Arkansas.

The smart lockers are built by Home Valet and feature three temperature zones (frozen, refrigerated and fresh). When a grocery delivery order is placed with Walmart, the delivery driver unlocks the box with a smart device, and places the groceries inside. Customers unlock the box when they return home and retrieve their items.

This smart locker approach could actually benefit Walmart shoppers in a few ways. First, customers get more flexibility because they don’t need to be/stay at home when their delivery is scheduled. Second, it secures groceries away from the elements and potential porch thieves. And finally, this delivery method is contactless, which will continue to be important even after the pandemic recedes. (Bonus benefit: Dropping off groceries to a box outside your house is a lot less creepy than Walmart’s idea of having a delivery driver enter your house when you aren’t there.)

But the smart locker is just the latest aggressive move by Walmart to make its delivery more convenient as it dukes it out with other retailers like Amazon and Kroger for your grocery dollar. In addition to launching its Walmart+ delivery service last year, Walmart is also testing grocery delivery via drones and autonomous vehicles.

Walmart can’t afford to rest on its laurels. Online grocery shopping is projected to hit $250 billion by 2025, accounting for 21.5 percent of all grocery sales. As such, everyone in the space is testing new programs to get you your groceries faster. Kroger is set to open the first of its robot-powered automated fulfillment centers this year. Albertsons recently debuted an automated curbside pickup kiosk. And Amazon will drop off groceries inside your garage when you’re out.

Walmart’s smart locker reminded me of a patent that Amazon was issued a couple years back for a robot that would live at your house, and then autonomously venture out to retrieve packages from a nearby pickup hub.

This might be a little overkill, but it’s not hard to imagine a time when Walmart’s smart locker sprouts wheels and goes to pick up your groceries. Walmart is already automating the middle-mile for delivery, so it’s not a big mental leap for your grocery being autonomously driven from a fulfillment center to a neighborhood hub. Once your order arrives at that hub, your smart locker drives over to get your groceries and drives them back to your doorstep to await being put in your kitchen.

That particular vision is still a ways away, but given how much retailers are investing in delivery infrastructure, it’s not that far off in the future.

January 4, 2021

Ketotarian, Mushrooms and Innovation Among Kroger’s 2021 Food Trend Predictions

Grocery giant, Kroger provided its food trends recap of 2020 and predictions for 2021 over the weekend. And while the list is definitely a PR move, it does provide a little insight into where the retailer thinks food is headed over the coming year.

But before we get into Kroger’s predictions, let’s take a quick look back at what foods trended at the retailer over 2020. Kroger compiled its results from year-over-year sales growth across Kroger’s business including its roughly 2,800 retail stores as well as pickup, delivery and ship. Based on that, these foods were the big winners of 2020:

  • Zero-Calorie Soft Drinks
  • Four-Cheese Mexican Blend Shredded Cheese
  • Flavored Potato Chips (Hot & Spicy, Regional Flavors & Meal-Inspired Varieties)
  • Sauvignon Blanc Wine
  • Heavy Whipping Cream
  • Fresh Burger Patties
  • Artisan Breads & Restaurant-Style Buns
  • Bulk Individual Coffee Pods (96-Count)
  • Party-Size Bags of Variety Chocolate
  • Black Forest Ham

Snacks. Cheese. Wine. Kroger’s list does seem to accurately reflect our collective mood during the pandemic year, when most of us were locking down and not leaving the house. Perhaps what’s more interesting, however, is what’s not on that list: Plant-based foods. Or plants of any kind, really.

This lack of plant-based burgers is in contrast with larger data showing that sales of plant-based meat (Beyond Burgers, Impossible Burgers, etc.) skyrocketed during the pandemic. The animal-based meat supply chain was strained as people panic-shopped, and ethical concerns over meat processing were raised as meat packing facilities became COVID hotspots.

That there were no plant-based foods on Kroger’s list could be a function of the type of shoppers the store gets, or that the growth in plant-based foods wasn’t enough when compared with the other foods. Snack foods, in particular made a comeback during the pandemic as we all tried to find comfort where we could.

Comfort food is actually a trend that Kroger sees continuing into 2021, writing that “Easy-to-prepare comfort foods are on the rise as consumers look to balance convenience and quick preparation times with flavorful meal options.”

While plant-based foods may have been absent from Kroger’s 2020 trends list, the retailer predicts that a “ketotarian” diet will become more popular this year. As Kroger explains, a ketotarian diet is “a plant-based spin on traditional keto guidelines. Consumers can expect to find a growing selection of these plant-based, high-protein foods on grocery shelves in the year ahead.”

While we’re talking about plants, Kroger also predicts that mushrooms will play a bigger role in our diets this year, writing “Consumers should expect to see mushrooms play a starring role in a variety of new products in 2021, including blended plant-based proteins, condiments, spices, seasonings and more.” We’ve actually been watching this mushroom mania play out over the past year here at The Spoon as mushrooms and mycelium kept popping up as the backbone for new types of proteins including cuts of plant-based meat.

One of Kroger’s 2021 predictions is also near and dear to our Spoon hearts: Innovation in the fresh food aisle. Kroger said to look out for in-store hydroponic farms and plant-based coatings like Apeel that extend the shelf-life of produce among the new technologies to look out for.

A trend that Kroger didn’t mention was food-as-medicine, a space which the retailer has been a leader in. We probably shouldn’t tie this list too much into overall business strategy for the company, but it’s noticeable, given everything that is on the list.

Whether or not it’s a PR stunt, Kroger’s predictions actually seem pretty reasonable, though I wish they had predicted a few more robots, especially since they are building out all those automated warehouses.

December 30, 2020

Data Analysis Shows Strong Foot Traffic Debut (and Dropoff) for Amazon’s Woodland Hills Fresh Store

It was by no means high on the list of disappointments in 2020, but I was still bummed that I couldn’t visit Amazon’s first Fresh grocery store in Woodland Hills, CA when it soft launched in August of this year.

It was Amazon’s first full, physical supermarket (the company had opened smaller scale Go Grocery stores before) and excitement was high. What types of Amazon-type technology would Jeff Bezos bring to the grocery sector?

Evidently a lot of people were keen on checking out Amazon, Fresh, according to data released this week from Placer.ai, a company that uses mobile phone location data to gather and analyze foot traffic to real world retail locations.

According to Placer, Amazon Fresh saw a surge of customers in the first weeks it opened to the public in September. In a blog post this week, outlining its findings, Placer wrote:

The first week saw visits on par with two local players with very strong visits rates, Trader Joe’s and Ralphs. But, Amazon Fresh quickly burst ahead with four of the next five weeks seeing the location drive over 5,000 more visits per week than either of those two competitors.

Amazon Fresh was also getting roughly the same number of visits per visitor as comparable grocers. Ralph’s and Trader Joe’s were seeing 2.4 and 2.2 visits per visitor respectively, while the new Amazon Fresh was already seeing 2 visits per visitor, indicating that people were having a good enough experience at Fresh to come back.

Placer reports that one of the reasons Amazon Fresh enjoyed so much foot traffic is because of the store’s “True Trade Area.” When picking a location for a store, a grocer might consider its main customer base to be within a straight five-mile radius of that store. But Placer’s data gathering shows that this strict geographic limitation isn’t accurate, and that a store’s shopping base can actually come from further out. This expanded reach is what Placer calls the True Trade Area.

As you can see from this map, Amazon Fresh Woodland Hills’ True Trade area actually covers a large swath around Los Angeles, so it was pulling customers from outside of Woodland Hills.

I was curious about some of Placer’s findings, so I spoke with Ethan Chernofsky, Placer.ai’s VP of Marketing (and author of the Amazon blog post), by phone this week. My first question was whether some of Fresh’s sizeable foot traffic could be attributable to curbside pickup. Amazon.com’s customer base it so huge, perhaps people were just ordering groceries online and picking them up at the Fresh store, even if that meant driving to another part of town. But Chernofsky said that was unlikely, given the length of time people were staying at the Fresh location.

But while Amazon Fresh enjoyed an early boom in foot traffic, starting in October, Amazon Fresh saw its numbers fall. As the Chernofsky detailed his analysis “Between October and November, the Amazon Fresh True Trade Area decreased by 27.1%, just as monthly visits declined 27.6%. On the other hand, Ralphs saw visits rise 13.7% as its own True Trade Area declined by 7.1%.”

One explanation for the drop could be that the excitement wore off, and what was once shiny and new was no longer shiny and new. Chernofsky doesn’t think that’s it though. As he wrote in a corporate blog post “the close relationship between visits per visitor metrics between the top local grocers indicates that this location was actually succeeding in driving repeat visits even among the launch buzz.”

Instead, Chernofsky attributed the drop to the COVID resurgence in Los Angeles this fall. As the virus reemerged, travel and work was limited, so there was less cross shopping, or tacking on a visit to the grocery store during an errand.

Amazon Locations Around Los Angeles

Another factor could be the fact that Amazon added three additional Fresh locations in Los Angeles since the opening of the first Woodland Hills location. The Northridge and North Hollywood locations both opened in mid-November and seem like they would draw from the same pool of customers as the Woodland Hills location’s True Trade Area.

Regardless, data like that from Placer is worth looking at to see how well Amazon is doing as it starts its forays into real world grocery. I’m still looking forward to a time when I can see the Amazon Fresh stores in person.

December 21, 2020

Cashierless Checkout Startup Trigo Raises $60M

Trigo announced today it has raised a $60 million Series B round to scale its cashierless checkout for the grocery store. The round was led by 83North with participation from existing investors Vertex Ventures Israel, Hetz Ventures, Red Dot Capital Partners, Tesco, and Morrag Investments. It brings Trigo’s total funding raised to date to $94 million, according to a press release sent to The Spoon.

Headquartered in Tel Aviv, Israel, Trigo retrofits grocery stores with a combination of AI-powered computer vision tech and ceiling-mounted cameras to enable cashierless checkout for retailers and customers. The end result is that customers can enter a supermarket, grab the items they need, and walk out without stopping at a traditional checkout station. Digital payment and receipts are automatic.

Last year, the company raised a $22 million Series A round and struck a partnership with U.K.-based grocery retailer Tesco. Trigo also has a partnership with Israel’s largest grocer, Shufersal.

Once the sole domain of Amazon and its Go stores, cashierless checkout has evolved over the last year to include many different companies, including Grabango, Zippin, and AiFi. Cashierless tech also has multiple use cases at this point. While the majority of its implementations are still in grocery stores, the tech is currently at stadiums, restaurants, and in apartment complexes, too.

The uptick in activity for this space makes sense given the global pandemic and an increased desire on the part of both retailers and customers to make the grocery store shopping experience more hands free.

For its part, Trigo says it will use its Series B funding to scale up, boost R&D, and expand its global presence.

December 17, 2020

Instacart and ALDI Expand Online EBT Grocery Purchases to 23 More States

Grocery delivery service Instacart announced today that it is expanding its partnership with supermarket chain ALDI to make online grocery shopping and delivery available to EBT SNAP participants across 23 more states and Washington D.C.

Starting today, those on the Supplemental Nutrition Assistance Program (SNAP) can use their Electronic Benefits Transfer (EBT) card to pay for groceries and get delivery from roughly 1,000 more ALDI stores from these new service areas:

Alabama, Arizona, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Rhode Island, South Carolina, Vermont, Washington, D.C., West Virginia and Wisconsin.

Instacart kicked off this program with ALDI back at the end of October when it launched a pilot program at more than 60 stores in Georgia. Earlier this month, the program expanded to more than 570 stores in California, Illinois, Florida, Pennsylvania and Texas.

We explained how the program works back when the Instacart/ALDI SNAP program kicked off, writing:

SNAP participants will be able to shop from ALDI through Instacart’s website or mobile app. When creating a profile, they can enter their EBT card information and a payment method, which will cover the cost of SNAP-approved food items. Taxes, tips and fees cannot be paid for with the EBT, so a second form of payment will also be needed. Once all that is set up, SNAP participants can shop for items and schedule their grocery delivery.

While giving SNAP participants the ability to participate in digital grocery shopping is an important step towards bringing more equity to our food system, Instacart’s program isn’t without its shortcomings. We lamented at the time of the pilot launch how a second form of payment was required for taxes, fees and tips. There are legal reasons for this, but it seemed like forcing families in need pay for delivery fees and tips could be a barrier to adoption. Or, in the case of tips, would Instacart’s gig “Shoppers” avoid jobs that don’t tip as well?

Instacart addressed some of these issues with today’s expansion. Per the press announcement:

New with this expansion and to help subsidize costs for EBT SNAP beneficiaries, during a 90 day period starting December 16, 2020, Instacart will waive delivery fees on up to the first three EBT SNAP orders for each customer with a valid EBT card associated with their Instacart account. ALDI pickup via Instacart costs $1.99 for orders over $35.

I mean, I know Instacart is a business and not a charity, and this is better than nothing. But for a company that raised $2.4 billion in venture money, and it being the holidays and all, it seems like it could have been a little more generous. Especially with the hunger and food insecurity surging across the U.S. right now.

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