Why longtime rivals Uber Eats and Instacart are teaming up

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Why longtime rivals Uber Eats and Instacart are teaming up
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The partnership comes amid heightened competition for food and grocery delivery, with giants like Amazon, Walmart, Target and DoorDash jockeying for market share.

Uber Eats will be available on grocery delivery service Instacart in a head-turning deal that could pave the way for further collaboration between the erstwhile rivals.a "Restaurants" tab in the coming weeks — and it'll be serviced by Uber Eats drivers, who deliver food from hundreds of thousands of restaurants.Uber Eats also provides grocery delivery.

"Instacart and Uber seem to be going from adversaries to partners — and the first thing I'm curious about is what this means for Uber's ambitions in the grocery delivery space," CFRA Research analyst Arun Sundaram tells Axios.

But CFRA analyst Sundaram speculated "this could be the initial stage of a potential acquisition at some point from Uber. It seems like they are testing it out right now."Share on linkedin

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