Kroger Shifts Focus From Third-Party to in-House eCommerce Fulfillment

Kroger is taking its digital delivery business into its own hands.

The grocery giant announced Wednesday (April 20) that it is hiring more than 200 new employees to gear up for the launch of Kroger Delivery in South Florida. The company is looking not only for drivers but also for people to help with the logistics side of the business.

“We are thrilled about the opportunity to provide fresh food and convenient services to customers throughout South Florida,” Andrea Colby, eCommerce corporate affairs and communications manager at Kroger, said in a statement. “The service combines the efficiency of technology with the experience of our associates to deliver fresh, affordable groceries directly to customers’ homes.”

The announcement suggests a change of tune for Kroger, which until now has primarily relied on Instacart to power its eCommerce delivery business. Certainly, there are advantages for the grocer to bringing delivery in-house, such as owning the transaction and retaining the full share of the profit, among others.