Instacart is getting into delivering last-minute cocktail ingredients and supplies to bars and restaurants.
The delivery app has struck a partnership with business-to-business alcohol marketplace Provi, the companies confirmed to Business Insider on Thursday. Instacart will offer same-day delivery of items, including mixers and paper products from grocery stores when ordered through Provi’s website and app.
The partnership won’t include alcohol delivery, the companies said. In the US, laws require alcohol brands to send their products to restaurants and retailers through distributors as part of a three-tiered system.
Instead, Instacart and Provi will work together on “rapid delivery as fast as possible” on items that restaurants and bars need in a pinch, such as extra limes for margaritas and napkins for special events, Provi CEO Matthew Tucker said. Many also receive weekly deliveries from more established restaurant distributors.
“What we are trying to solve for is that last-minute out-of-stock,” Tucker told Business Insider.
The partnership expands Instacart’s business-to-business offerings. The delivery service got its start by bringing groceries to individual shoppers’ doorsteps but has offered business delivery through a separate division since 2023. Its customers include the Four Seasons resort chain and Van Leeuwen Ice Cream.
Working with Provi allows Instacart to reach bars and restaurants “where they are shopping today,” said Andrew Nodes, vice president and general manager of Instacart Business and Supply Chain.
“Now, when a bar or restaurant runs out of herbs or straws mid-service, they have a same-day solution that helps them operate smoothly without missing a beat,” Nodes said.
It’s the first time that Provi is selling non-alcoholic items, Tucker said. The partnership is also coming online at a busy time: the weeks leading up to Thanksgiving and Christmas are when Provi’s website and app see the most customer engagement of the year, according to the company.
Provi users will see an option to order those items on the platform and will be redirected to Instacart to complete the purchase, he said.
While small, many of the products that Provi and Instacart plan to sell are key to driving sales and avoiding customer disappointment, Tucker added. Drinks tend to be the most profitable items at many bars and restaurants.
“If you don’t have the garnishes,” he said, “you aren’t able to sell some of your highest-margin products.”
Restaurants are also dealing with labor shortages resulting from immigration raids, he said. That means many establishments have fewer staff than ever to make quick grocery runs to keep bars stocked.
“When you have a problem with your labor, you have a problem operating your restaurant,” Tucker said.
Do you have a story idea about Instacart? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here‘s our guide to sharing information securely.
