Instacart Teams Up With Dollar General for Faster Delivery: What Investors Need To Know

The partnership expands Instacart’s reach into Dollar General’s everyday retail business, adding a large new store network to its same-day delivery platform.

• Instacart is adding Dollar General and pOpshelf locations to its growing retail marketplace.
• The rollout will initially cover six states before a broader 48-state expansion this fall.
• Dollar General’s addition takes Instacart’s marketplace to more than 2,200 retail banners representing nearly 100,000 stores.

Instacart (CART) and Dollar General (DG) announced a new partnership Wednesday to offer same-day delivery of Dollar General’s everyday essentials through Instacart’s app and website.

CART shares were down 4.4%, while DG stock traded lower by over 1% as of the time of writing Wednesday.

The partnership will begin with a pilot at approximately 7,000 Dollar General and pOpshelf stores across six states in the coming weeks. The companies plan to expand the service to approximately 20,000 stores across 48 states this fall.

Customers will be able to shop Dollar General products on Instacart, including food and snacks, household essentials, and health and beauty products. Delivery will be available in as fast as one hour, according to the companies.

Instacart Adds To Growing Retail Network

For Instacart, the partnership adds Dollar General to its Marketplace, while Dollar General gains another channel through which customers can order its everyday products. Dollar General will join more than 2,200 national and local retail banners on the Instacart Marketplace.

“Dollar General's vast footprint and longstanding commitment to affordability make them an important addition to the Instacart Marketplace,” said Ryan Hamburger, chief commercial officer at Instacart.

Hamburger added that expanding the partnership to approximately 20,000 Dollar General and pOpshelf stores will give customers broader access to affordable food and everyday essentials through same-day delivery.

Instacart said its Marketplace currently partners with more than 2,200 retail banners representing nearly 100,000 stores. Beyond its Marketplace, the company said its business also includes its Enterprise platform and Ads ecosystem, which support ecommerce, fulfillment, in-store technology, AI offerings and advertising for partners.

Gopuff To Join Instacart Marketplace

The partnership comes as Instacart continues adding retail and technology partners. On Tuesday, the company announced that Gopuff would join its Marketplace, with orders fulfilled through Gopuff’s delivery network and delivered in as fast as 15 minutes.

Retail sentiment on Stocktwits was ‘bearish’ toward DG while sentiment toward CART was ‘bullish.’

CART stock has declined nearly 7% year-to-date, while DG stock has plunged about 112% over the same period.

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