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“Adding another big retail name to its roster is a win for Instacart,” Neil Saunders, managing director at GlobalData Retail, said in an email. “Given Walgreen’s massive store footprint, this expands choice for a lot of Instacart users.”
Instacart mainly uses independent contract workers, not its own employees, to deliver orders, and its contract workers will shop for the items at Walgreens stores and then deliver them.
In addition to the Instacart partnership, Walgreens offers delivery through Postmates and DoorDash and curbside pickup on online orders.
Drug stores have been focused on being local and convenient options for customers to grab essential items, but the rise of online shopping and home delivery has threatened that position, said Saunders. “Being on a platform like Instacart helps to remedy the weakness.” And since Walgreens does not have a delivery infrastructure of its own, it is partnering with companies that do, he said.
CNN Business’ Sara Ashley O’Brien contributed to this article.
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