What: Instacart is considering opening up to 50 dark stores to scale up its picking method

Why it is important: the evolution of a service offered to retailers into a potential solution to real estate questions

Instacart as a very simple business model: it offers to retailers a click and collect solution without weighting them with extra staff, as it crowdsources workers to shop in the physical stores and deliver to customers. However, Instacart is aware that this method needs to be improved, as it could be faster, more efficient and less prone to errors.

This is the reason why they have taken contact with providers of warehouse technologies with a plan in mind to open up to 50 dark stores across the US. This intention, publicly described as a logical continuation of the service initially offered to retailers by Instacart, is perceived by some as a will to become a retailer itself.

IADS Note: This stance is very similar to the one used by Farfetch in its time when they decided to pivot from a service offered to wholesalers to a new channels for brands.

Instacart Frames ‘Dark Store’ Exploration as a Service to Partners