CHICAGO -German grocery chain Aldi Inc is the latest to pilot grocery delivery, announcing a partnership that will launch at the end of the month with Instacart in Los Angeles, Atlanta and Dallas.

The partnership is a way to test online grocery demand, Aldi’s VP of corporate buying Scott Patton told Reuters. According to the Food Marketing Institute and research firm Nielsen, online food and beverage sales were about $20.5 billion in 2016, but could reach as much as $100 billion, or a 20% growth rate, by 2025.

The partnership is important for Instacart, which also has agreements with Target and Costco. Instacart was the online shopping partner of Whole Foods Market until announced it will acquire the retailer.

Shoppers will order from Aldi through Instacart’s website and app. Instacart then picks up inventory from the store and promises delivery in under an hour.

Published on WholeFoods Magazine Online, 8/14/17