The battle for grocery delivery is heating up.
Six months after Amazon acquired Whole Foods, the company announced that it would test free same-day delivery for Prime members in four U.S. cities. This comes in the same month that Instacart raised another $200 million (at a $4.2-billion valuation), while Target begins integrating same-day delivery with its Shipt logistics service.
It’s clear that the consumer desire for convenience — and instant gratification — is higher than ever, and grocers are listening. But that convenience will come at a cost for both offline and online shoppers alike as the challenges of e-commerce reduce already thin margins for grocery chains. While Prime shoppers might revel in free deliveries from Whole Foods, all shoppers (both online and off) will end up footing the bill — at least in the short term.