Instacart has announced this morning it will no longer be doing business with Whole Foods, a U.S. organic grocery chain the company launched a partnership with in 2014. This comes roughly one year after Amazon closed its $13.7 billion acquisition of Whole Foods; Amazon, of course, has its own grocery delivery service, AmazonFresh.
Currently, Instacart has 1,415 in-store shoppers, or paid Instacart couriers, at 76 Whole Foods locations; 243 of those couriers, who exclusively deliver groceries from Whole Foods, will no longer be able to make Instacart deliveries beginning February 10, when the company officially winds down its partnership. Instacart says they have already placed 75 percent of those workers in new roles, though 25 percent, or about 60 workers, have been laid off.
Instacart added that 75 percent of the 1,415 total shoppers, or 1,016 people, are also expected to be placed in new stores, meaning layoffs could surpass 350.
A person familiar with the matter told TechCrunch that significant developments over the last 18 months forced Instacart to wind down its relationship earlier than planned. Whole Foods didn’t immediately respond to a request for comment. Read more