Instacart has slashed prices on grocery delivery by a third, making the service a more competitive and cost-feasible option than Amazon, which delivers groceries from Whole Foods through its Prime Now service, and rival grocery ecommerce service Shipt.
In a Nov. 28 e-mail from the third-party service to its customers, Instacart dropped its delivery fee from $5.99 to $3.99 per order of $35 or more, though customers still pay a 5 percent service fee and $3.99 default delivery fee. Orders arrive within two hours of placement.
Moreover, the grocery technology company's subscription service, Instacart Express, now costs $99 per year, compared to $149, and offers unlimited free grocery delivery on orders of $35 or more with no service or default delivery fee. Monthly Express membership is $9.99.
"We've made grocery delivery more affordable. … Let our personal shoppers take care of your grocery shopping while you save an hour or two," the grocery ecommerce service said in the e-mail.
Currently, members of Amazon's Prime subscription program can enjoy two-hour delivery of groceries from Whole Foods for free, and ultra-fast delivery within one hour for $7.99 on orders of $35 or more. An Amazon Prime membership costs $119 annually – up $20 as of May – or $12.99 per month, but the value over Instacart arguably is unlimited free two-day delivery through Amazon, content streaming and more, which the San Francisco-based delivery service does not offer.
Randy Hofbauer is the former digital and technology editor of Progressive Grocer. He has more than a decade of experience as a content strategist, researcher and marketer, almost all of it covering CPG retailing. His insights and work have been cited in a nu Read More