Aldi turns up the heat in already competitive supermarket industry

German discount grocer Aldi is jumping into home grocery delivery.



The retailer announced a pilot program with Instacart, the on-demand grocery delivery service. Starting later this month, the service will be available in Atlanta, Dallas, and Los Angeles, with potential for future expansion.



Shoppers in the pilot markets will be able to fill their virtual carts by visiting Instacart.com or downloading the Instacart app. At checkout, they can choose a delivery window that works best with their schedule, anywhere from an hour or up to a week later.



Aldi's partnership with Instacart will help it compete with more upmarket grocery chains that have already made home delivery part of their game plan. It also gives the no-frill chain a leg up on another German discount grocer, Lidl, which has just started expanding in the United States.



"Our partnership with Instacart is another example of Aldi expanding our commitment to customer convenience and value," said Jason Hart, CEO of Aldi, which operates nearly 1,700 U.S. stores in 35 states. "We know customers are looking for new ways to save time and money. Instacart provides easy access to our low prices at the click of a button."



To celebrate the partnership, Aldi and Instacart are offering customers $20 off their first Instacart order until Sept. 30.