Instacart to build fulfillment centers near supermarkets

Grocery delivery firm’s warehouses would hold 10,000 to 50,000 items

National /
Jul.July 23, 2021 09:15 AM
Instacart CEO Apoorva Mehta (Getty)

Instacart CEO Apoorva Mehta (Getty)

Instacart is the latest company seeking to cash in on the industrial real estate boom, making plans to build its own fulfillment centers for supermarkets.

The grocery delivery company will begin developing an undetermined number of fulfillment centers over the next year, according to the Wall Street Journal. The centers would be able to hold between 10,000 and 50,000 items.

Instacart plans to use robots to retrieve items in the fulfillment centers and employees to pack and deliver them. It’s unclear how much Instacart is planning on spending.

The company saw business surge during the pandemic, as consumers turned to online ordering to avoid going to grocery stores. Shoppers are beginning to return in-person, however, leading Instacart to adjust its strategy. Fulfilment centers offer the possibility of speeding up orders — a necessity when it comes to groceries — and cutting costs.

Instacart raised almost $700 million in 2020 and is valued at $39 billion. The company has plans to go public.

Warehouses have been one of the hottest commodities in real estate as e-commerce giants and smaller companies alike look to cut costs and accelerate deliveries. From January through May, first-year base rents on leases of at least a year grew almost 10 percent, with larger warehouses seeing even sharper increases.

[WSJ] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
    A&E pays just $510K in lead-paint settlement
    A&E pays just $510K in lead-paint settlement
    Seeding from recapitalization of 25 health care properties
    KKR, Cornerstone in $1B JV to develop health care facilities
    KKR, Cornerstone in $1B JV to develop health care facilities
    The Broadway location of Halloween Adventure (Facebook via New York Costumes / Halloween Adventure)
    Halloween Adventure to vacate East Village home as retail condo hits market
    Halloween Adventure to vacate East Village home as retail condo hits market
    Bluerock Residential CEO Robert Ramin Kamfar (Owler)
    NY-based multifamily REIT Bluerock explores sale
    NY-based multifamily REIT Bluerock explores sale
    Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
    Turnbridge, Dune land $381M loan for Hunts Point site
    Turnbridge, Dune land $381M loan for Hunts Point site
    Two more rent law challenges tossed, landlords reserve hope in appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
    Big month for retail sales bodes well for landlords
    Big month for retail sales bodes well for landlords
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...