Target just took a key step to compete with Amazon

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Why Target Is Targeting the Online Grocery Business

Target is taking its shopping experience to the next level.

The company has partnered with Instacart to try out same-day grocery delivery in Minneapolis and its suburbs, according to a release from the brand.

This test-run will allow shoppers to purchase groceries, baby products, pet products, beauty and health-related goods, and more online.

Delivery will be free for first-time shoppers, and then is priced at $3.99 for a two-hour window.

"Our goal is to make grocery shopping easier and more convenient," Jason Goldberger, and Target Mobile's President said in the release. "Our team is constantly listening to guests' needs and looking for new ways to help them shop Target wherever, whenever and however they want. Instacart is a leading player in this space and we look forward to seeing how guests in the Minneapolis area respond to the service."

Instacart currently partners with a variety of grocery stores, including Fairway, Whole Foods, and Costco. In January, it received a $2 billion valuation.

By partnering with Instacart, Target is entering a crucial sector. Grocery shopping is already a $600 billion industry, and online grocery shopping is the way of the future. Further, tech giants Amazon, eBay, and Google all offer — or are dabbling with — same-day delivery for some products, as Business Insider Intelligence noted earlier this year.

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