Instacart To End Partnership With Whole Foods

(RTTNews) - Delivery services Instacart has decided to end its four-year partnership with Whole Foods Market, the grocery store chain owned by Inc. (AMZN). The termination of the partnership comes as expands its own delivery efforts for products from Whole Foods.

Instacart said Thursday that it would cease deliveries from 76 Whole Foods locations from February 10, 2019 and 243 employees will be laid off. The company noted it currently has 1,415 employees across the 76 Whole Foods locations.

"In the months that follow, we expect to ramp down all remaining Whole Foods in-store shopping operations in preparation for Whole Foods to fully exit our marketplace in the coming months," Instacart Founder and CEO Apoorva Mehta said in a statement.

Instacart expects to be able to place more than 75 percent of all its impacted employees in new jobs at another retailer in their area. For the remaining impacted shoppers, the company said it is committed to doing everything possible to support them.

Instacart will offer a transfer bonus for all employees that will be placed in a new role with the company, in order to support their overall transition.

For employees who choose not to, or cannot, be placed in a new role, Instacart will provide a minimum of 3-months separation package based on their maximum monthly pay in 2018, as well as additional tenure-based compensation.

Instacart added that it has already shared the information directly with all impacted employees.

Instacart currently works with more than 300 retailers across 15,000 stores in the U.S. Earlier this year, the company announced the national expansion of its partnership with Walmart's Sam's Club division, and Kroger Co.

Amazon, in October, announced the launch of delivery of natural and organic products from Whole Foods Market through Prime Now in more U.S. cities. For the holiday season, Aamzon has said that Prime members can shop groceries from Whole Foods Market through Prime Now in as little as an hour in 60 cities, and grocery pickup in as little as thirty minutes in select cities.
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