Instacart is getting restaurant delivery — thanks to Uber Eats

Food delivery service Instacart is expanding into restaurant delivery thanks to a new partnership with Uber Eats.

In the coming weeks, Instacart will add a new feature for restaurant delivery, with back-end mechanics developed by Uber. The restaurant listing will be provided by Uber, the transaction will be overseen by Uber’s software, and the food will be picked up and delivered by Uber Eats couriers. The only difference is that everything will happen within the Instacart app or website.

Neither company wanted to share the financial details of the deal, so we have no idea how much Instacart is paying to use Uber’s food delivery software. Uber spokesman Noah Edwardsen said prices would not change for customers, nor would couriers receive lower payments.

“Consumers will see the same restaurant menu prices on Instacart and Uber Eats, and delivery drivers will be paid the same as they would be for orders directly from Uber Eats,” Edwardsen said.

Uber says its motivation is to “generate more orders for Uber Eats partner restaurants,” while Instacart is able to add a galaxy of new businesses to its delivery operation without having to go through the laborious process of building it from scratch. In its press release, Uber states that it is teaming up with Instacart to “create technologies and solutions that support brick-and-mortar businesses.”

Still, it’s a curious move considering both companies compete with each other for supermarket customers. Instacart dominates digital grocery delivery, capturing more than 70% of the market share in 2023. Still, Walmart and Amazon remain the biggest players in the overall grocery delivery business.