Instacart is a company based in America that operates a grocery delivery and pick-up service in Canada and the United States, with its headquarters located in San Francisco, California, US. Instacart was founded in the year 2012 by Apoorva Mehta an Entrepreneur and a former Amazon Employee. Instacart originally began in San Francisco and by 2015 the company had 200 employees by 2018 the company had expanded to Canada. Instacart is one of the leading platforms for making online purchases today, not just in North America but also in Canada. This is because of its great customer service and easy user experience. And also its one of the only platforms that offer same-day delivery. Customers are also given the option to return their items with a 100% full refund. And people can use personal shoppers to purchase any item they want and get fast delivery. Compared to other online purchasing platforms instacart beats others in terms of their seamless customer experience. Let’s find out How does instacart make money?
Instacart creates a means for you to make virtual purchases with the use of ‘Personal Shoppers’. This company also works with popular grocery stores and retail partners to offer diverse consumer goods around and within your locality.
Instacart makes its gains through income sharing, delivery charges, mark-ups on prices, charges on subscriptions, and in-app advertisements.
This shall be discussed in detail below.
Income Sharing: Income may best be described as money received, regularly for work or through investments. In terms of income sharing, Instacart charges a fee on every purchase a customer makes, however, this charge isn’t imposed on the customer but on the retailer. Instacart has an agreement already in place with its retailer partners and this mainly depends on the retailer’s transaction volumes among other factors.
Delivery Charges: Instacart imposes a delivery charge on consumers whenever they make a purchase. This delivery charge may vary as it depends on the city, timeframe, and the location of the order. Based on their Website, the standard delivery charge for purchases above $35 is $3.99 for scheduled delivery or 48 hours delivery and $5.99 for a 24 hours delivery. Purchases below $35 are charged at $7.99 for a scheduled or 48 hours delivery and $9.99 for a 24 hours delivery. Service fees may also be charged and this can equate from 5-10% of the total purchase value. Other charges like ‘Heavyweight fees” where the order surpasses the specified weight limit may also be imposed. Personal shoppers may also get tips, which are received directly by the shoppers.
Instacart Express: In 2013, a Popular Bay Area Grocery delivery service released its ‘Express’ service option to the general public. Instacart Express is a service that provides free delivery and a reduction in service charges. This comes in turn for an annual or yearly membership fee. The Monthly membership fee $9.99 and the yearly fee is $99. Other benefits are no demand surge pricing, among others.
In-app advertisements: In-app advertisements basically mean that an app permits an advertisement to be incorporated into its experience in order for the publishers to obtain income. Sellers and brands can purchase advertising space on Instacart giving them direct access to their consumer base. Some of the principal brands advertising on this platform are Mars and Coca-Cola. The rates charged to these advertisers are undisclosed, but the charges are greatly dependent on factors like; Duration of the Ad campaign, the brand’s size, and the advertising space, among other factors.
Apart from those listed above Instacart makes its gains through commission rates among others.
So to conclude, Instacart is a very useful platform that is available throughout the United States and also Canada. Also, it is one of the few purchasing platforms that offer the same delivery for orders made. Instacart has many retailer brands and most with large grocery store chains some are Coca-Cola and Mars, which gives it more advantage over its competitors. And also Instacart has made provision for an optional and cost managing Insta express feature, which has been made available to all its users in turn for a monthly or annual subscription. Although Instacart has proven beneficial to its users and hasn’t been able to reach those individuals in the rural areas some may find it very difficult to use.
FREQUENTLY ASKED QUESTIONS
Can I use instacart without a subscription?
Yes, you can, the Instacart express is only for those who would like to make free delivery purchases and benefit from a reduction in service charges. But even without a membership, you can make a purchase or order on instacart.
Am I entitled to free delivery without being a member of Instacart Express?
No, you aren’t. But you are entitled to free delivery on your first purchase when using the platform, but subsequent orders aren’t free.
Does Instacart express offer a free trial to its new members?
Yes, if you are using instacart for the first time, you are entitled to a free trial to discover its features and learn its benefits.
How much am I required to pay for the Instacart express Feature annually?
You are required to pay an annual fee of $99.00, where you will have access to the free delivery feature, reduction in service, and others. And as a new user, you are entitled to a 14-day free trial upon the use of the platform.
How much am I to pay for the Instacart express feature monthly?
You are to pay $9.99 monthly for the Instacart express feature, in which you shall have access to all the benefits and features that come with the platform.
Can I Cancel Instacart Express after the free trial?
You can cancel your membership at any time you wish. If you cancel within the first 14 days of your membership and haven’t placed any orders you will receive a full refund for the membership.
Can I waive the Instacart service fee?
No, you can’t and with Instacart you are now charged a service fee of 5% with a minimum of $2
