Let’s discuss “Why Is Instacart So Expensive?” in this article. We truly live in an on-demand economy, most people want something here and now. Some of the biggest companies in the world have built themselves around consumer demands, the same can be said of food shopping which has been somewhat left behind when compared to e-commerce or transport. Instacart however is trying to change that with the on-demand grocery delivery company now processing around $40 billion in sales per year.
Ever since covid-19 there has been a tremendous increase in online shopping all over the world, thousands of small businesses have closed due to covid-19 outbreak but one sector that grew exceptionally is online grocery delivery. Headquartered in San Francisco Instacart is a marketplace that offers people the chance to buy food items in their local area and get them delivered within an hour, essentially it is a delivery and picks up service for your weekly shop.
Why is instacart so expensive?
Instacart is one of the most famous online grocery shopping companies, for some people instacart may be a little over their budget and seems expensive that is because of their enormous service fees. Instacart charges fees when an order is confirmed, instacart covers a lot of charges which can go up to more than $20.
The fees charged by instacart are as follows:
- Delivery fee
- Service fee
- Bottle deposit and bag fees
- Heavy fee
- Delivery fee
Different stores charge different fees for delivery depending on their store location and the size of the order. The delivery fees can range from $3.99 up to $7.99, if you are a regular instacart user then it will be better if you subscribe to the membership because instacart express members provide you with free delivery.
- Service fee
The service fee helps cover a lot of costs like customer support, background check, and payment processing. The service fee can be ranged from 5% for those who didn’t subscribe to the membership, as for those who have subscribed for the membership their service pay starts from 1.9%, which is a lot lower than 5%.
- Bottle deposit and bag fees
This is a way to stop people from using plastic bags as it is harmful to the environment and is applied in many countries. You will pay an additional bag fee only in the states in which this fee is imposed, the bag fee is about $0.10.
- Heavy fee
The heavy fee is applicable only if the total weight of the items bought is more than 25 kilograms. The heavy fee can begin from 5%, depending on the weight of the items you bought from instacart, the heavier it is the more they will charge. The fee is approximately around $9.
There are also some other things they charge a fee for like, suppose buying from a store which the instacart has not partnered up with and giving tips to the instacart drivers for their services, well that depends on how much you want to give. Instacart is expensive but if you look at the brighter side it provides you with good services, saves your time shopping, and makes it easier for your daily life.
Instacart or amazon fresh?
There are many grocery delivery services in the states with good services which can bring your grocery to your doorstep with just a few clicks. Since the pandemic there has been a serious increase in grocery shopping online. The number of grocery delivery services is increasing, from all of them the two most used delivery services are amazon fresh and instacart, they both deliver from door to door and their services are good. If you are not sure which one to use, you can keep reading the following discussion and see their differences:
If you shop from amazon but you didn’t subscribe to its prime membership then you cannot use amazon fresh as it is only applicable for prime members, every amazon prime or amazon prime student member can take advantage of the service. However, instacart is available for everyone, you can just install the app or go to their website and you can shop freely, and get your order delivered. If we talk about their partnership with stores then instacart is at large because amazon has fewer partnership stores.
Instacart and Amazon both offer similar pricing options. Here is a pricing table to compare both instacart and amazon fresh fees:
Instacart non-member
2 hours delivery window with a delivery fee starting at $3.99
Instacart member
$9.99/month or $99 / year
Lower service fees 5% credit back on pick up
Amazon prime
$12.99/month or $119/ year
Free 2 hour delivery
If it comes to product choices instacart has the advantage. Instacart has partnered up with over 40,000 stores national, regional, and local retailers. On the amazon fresh online store, you can find a mix of their store brands like amazon fresh or whole foods. If we talk about alcohol, alcoholic beverages from the amazon platform are only in a few locations whereas, instacart is one of the best alcohol delivery apps.
Amazon’s number one priority is the satisfaction of customers. One thing about Amazon is their customer care service which is 24/7 you can reach them through email, live chat, and call. If you place an order through amazon the delivery won’t take long. However, instacart is lacking in this sector as they currently support only the senior category but you can easily contact your delivery driver during the delivery process.
Conclusion
For many people, Instacart may seem expensive but that’s just the way it is for the company to earn money, the small number of service fees. If you look at what instacart does for you it is worth the service fee, instacart makes your daily lives much easier. Compared to other delivery services instacart is cheaper and much better and it is worth trying out.
Frequently asked question
How do instacart shoppers make money?
Instacart has partnered with some companies as well as local stores, if they buy from those partnered companies and local stores and deliver items to customers’ homes then they earn money. They can even earn through customers’ tips.
