Dive Brief:

• Publix has kicked off its 15-minute grocery delivery service in Miami's Wynwood neighborhood utilizing a new “nano-fulfillment” center in partnership with Instacart.
• The companies will open two more dark stores in the coming weeks — one in the city's Brickell neighborhood, and another in the nearby city of Coral Gables, Florida, according to an Instacart spokesperson. The service offers “thousands” of items that include fresh produce, snacks, pantry staples and household items, per the announcement.
• Publix is the first grocer to utilize Instacart’s new Carrot Warehouses, one of the new tools the e-commerce company offers as part of the suite of retail services it unveiled last month.

Dive Insight:

With its new service that whisks groceries to consumers’ doorsteps in as fast as 15 minutes, Publix is turning up the dial on speed another notch as it tests convenience delivery in a major urban market.

Publix developed the “custom” warehouses in tandem with Instacart through that company’s new fulfillment services arm. The Instacart spokesperson declined to say exactly how many items are available through the new service, though the announcement notes a wider assortment than other convenience services. By relying on dedicated facilities, the service will ensure high in-stock rates for products, the announcement noted.

An online search on Instacart revealed that the new 15-minute service carries a $10 order minimum, with delivery fees varying according to order size. Products range from fresh fruits and vegetables to salad kits, snacks, gourmet cheese and some prepared foods. 

The service focuses on large pack sizes and multi-packs, suggesting Publix sees it as a way for shoppers to stock up in between grocery trips, or before a party. This includes 2-pound bags of limes and 5-pound bags of potatoes, an 89-ounce bottle of Tropicana juice and an 18-pack of Frito Lay chips.

“As we continue to evolve our e-commerce strategy, 15-minute delivery is another example of how we’re committed to meeting our customers wherever they are – whether it’s in-store or online for a convenience need,” said Erik Katenkamp, vice president of omnichannel & application development at Publix, in a statement.

Instacart initially revealed Publix's 15-minute service last month as part of its announcement of the Instacart Platform, the bundle of retail services it offers as it looks to deepen partnerships with grocers. Other services include advertising, consumer insights, smart carts and building websites for grocers.

With its speedy delivery in Miami, Publix becomes the first grocer to join the ranks of “ultrafast” delivery companies that can deliver orders in as little as 15 minutes. Startups like Getir and Gorillas have launched service in major cities like New York and Chicago, and market leaders like DoorDash and Gopuff have followed suit. 

Other grocers are rolling out convenience delivery services targeting 30 minutes as a minimum time window. This includes Kroger along with each of Ahold Delhaize’s U.S. banners, which have linked up with Instacart’s convenience delivery channel. Kroger is also preparing to launch its own convenience delivery service powered by Ocado micro-fulfillment sites in South Florida, potentially becoming a challenger to Publix. Earlier this month, Kroger announced it’s hiring more than 200 workers to power the service in the area.