Retail

Uber and Instacart just formed an alliance, and they're taking aim at Doordash

A black delivery bag that reads "Uber Eats."
Instacart and Uber Eats are teaming up on restaurant delivery. Gonzalo Fuentes/Reuters
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You can now get restaurant takeout through Instacart thanks to a new partnership with Uber Eats.

Instacart customers will be able to order from "hundreds of thousands" of restaurants through a tab on the delivery service's app just for restaurants, the company said Tuesday.

Restaurant orders placed through Instacart will be picked up and delivered by Uber Eats gig workers. Users of Instacart+, the company's paid subscription service, will get free delivery on restaurant orders over $35.

The partnership, which will be rolled out over the next few weeks, allows customers "to conveniently tackle all their food needs from a single app," Instacart CEO Fidji Simo said.

"Whether it's ingredients for a beloved family recipe, a prepared meal from a nearby grocer or takeout from a favorite restaurant – customers can now get the food they want, from the retailers and restaurants they love, all within the Instacart app," Simo said.

"You could say that we're a threat to DoorDash both independently and teaming up as well," Uber CEO Dara Khosrowshahi told Bloomberg about the partnership, adding that the Uber will get access to Instacart's base of mostly suburban consumers through the partnership.

DoorDash controls about two-thirds of the market for food delivery in the US, per Bloomberg Second Measure.

Getting into restaurant delivery is the latest way that Instacart is expanding its business into new areas. The company plans to have thousands of its Caper shopping carts, which allow customers to ring up products as they place them in the cart, in stores by the end of the year.

Instacart is also trying to expand its advertising business, both through its website and app as well as through its Caper carts.

Do you work for DoorDash, Instacart, Uber Eats, or another gig delivery service and have a story idea? Reach out to this reporter at abitter@bjinnox.com

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Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@bjinnox.com or via encrypted messaging app Signal at +1 (808) 854-4501.