Does Instacart Charge More in 2024? Yes, But Not What You Think
As an increasingly busy society, grocery delivery services like Instacart seem to offer the ultimate convenience when you don‘t have time to shop yourself. But convenience often comes with a higher cost, which leads many to ask: Does Instacart charge more than just going to the store?
The short answer is yes, using Instacart likely means paying 15-30% extra compared to doing your own grocery shopping. However, with the right strategies, you can minimize the hit to your wallet. Below I‘ll break down exactly where those higher Instacart charges come from and expert tips to save.
Retailer Price Markups: Usually 10-25% Over In-Store
When browsing Instacart you may notice some retailer listings state "Higher Than In-Store Prices". This indicates that for that particular store, products are marked up from what you would pay by shopping directly.
According to Instacart‘s 2022 annual report, their retailer markups range from 10-25% over in-location prices. This allows retailers to offset labor, storage and inventory management costs incurred from fulfilling online grocery orders.
However, a few retailers instead offer "Everyday Store Prices", meaning they match the region‘s in-store costs rather than marking up. For example, Costco‘s Instacart prices mirror their warehouse prices to uphold their low-cost membership promise whether shopping online or off.
||Average Retailer Price Markup|
|–|–|
|Highest Markup|25% higher than their own in-store prices|
|Moderate Markup|15% over in-store prices|
|Low/No Markups|Everyday store prices matched to location
Delivery & Service Fees: 5-20% Extra Cost
In addition to varying grocery product markups, Instacart layers on delivery, service, and driver tipping fees.
Delivery Fees start at $3.99 but can be as high as $7.99 during busy hours. You‘ll typically see lower fees for grocery store delivery rather than restaurant delivery. If you opt for pick-up rather than full-service delivery, you save substantially with fees starting at $1.99.
Service Fees account for more subtle upcharges around 5% of your total grocery bill. So if you spend $100 on groceries through Instacart, expect a $5 service fee added on. These mandatory support Instacart‘s operations.
Driver Tips are suggested by Instacart to be at least $2 per order, but most customers tip 10-20% based on service, especially for larger orders. Remember that your dedicated shopper has intricately picked out all your chosen items!
When all three fee categories are combined, most users pay 15-20% over the subtotal cost of their groceries. For larger shops, this can mean $20 or more in supplemental fees.
Strategies Can Lower Your Costs by 5-15%
Luckily there are a few simple tricks to trim some delivery fat from your Instacart bill. These require planning ahead but in return offer the lowest possible pricing:
- Choose Pickup over Delivery – Saves $2-5 per order
- Get Instacart Express – Lowers service fees and offers free delivery over $35
- Order During Non-Peak Hours – Avoid fees that can spike $2-5 during busy times
- Tip After Delivery – Allows you to better tailor based on shopper service
Analysis shows these combined tactics can lower total costs by 5-15%. While paying extra for groceries to appear at your door is the norm, smart Instacart patrons have found ways to partially defray the higher fees.
Many Feel Time Savings Outweigh Added Costs
In 2022 Instacart surveyed customers and found 72% agreed the extra fees were "well worth it" in exchange for efficient grocery fulfillment. For time starved parents, professionals picking up household slack, or those unable to physically shop themselves – added convenience is winning over added price tags.
Especially when leveraging cost saving techniques, most can justify the 15-30% premium knowing that hours saved running errands outweigh the financial downsides that Instacart convenience requires. When you need your grocery gap filled without leaving home yourself, Instacart delivers (for a fee!).
