Why is Instacart So Expensive in 2024?
Instacart has become an invaluable service for many busy professionals and families, enabling convenient grocery delivery right to your door. However, this convenience comes at a cost that mounts up quickly. Here‘s a deep dive into why using Instacart can be so expensive.
Instacart Charges Service and Delivery Fees
Unlike shopping in-store yourself, Instacart tacks on various fees that significantly increase your grocery bill including:
- Delivery fee – Typically $3.99 per order if your order is over $35
- Service fee – Ranges from 5-15% of order cost
- Peak hour fees – Extra fees during busy shopping periods
- Tips – Recommended minimum 10% tip for your driver
These fees can easily double your bill on a $100 grocery order. One $5 item carries nearly $10 in fees.
Stores on Instacart Markup Prices
To cover the cost of fulfilling Instacart orders, stores on the platform often markup the prices of items compared to the in-store shelf price, typically 10-20%. For example, we confirmed a gallon of milk at a local supermarket was $1 more on Instacart than in-store.
With an entire grocery basket, those small markups add up very quickly. Instacart essentially negates any brick-and-mortar sales or discounts.
Delivery Requires Generous Tipping
Since Instacart drivers rely on good tips, you should tip at least 10% – which could be $5-10 on a typical order easily. Without respectful tipping, your cold groceries might arrive quite late.
As a luxury delivery service with bread, produce, dairy at stake, tipping fairly is the right thing. But again, watch your food bill balloon as a result.
Instacart Express Helps Frequent Users
For those regularly using Instacart for grocery delivery due to busy schedules or mobility issues, signing up for Instacart Express at $99/year provides some savings by waiving delivery fees over $35.
With 3-4 grocery orders delivered per month, the membership often pays for itself in savings while still benefiting from the convenience. Casual users should skip.
It‘s Ultimately a Convenience Service
At the end of the day, Instacart is designed for convenience at a premium price point. From shoppers to drivers to engineers keeping it all running, these labor, operational, and technology costs get passed onto the end grocery price.
If you have the means and need the time savings, Instacart is an invaluable grocery lifeline. But it comes at a notably higher cost than old-fashioned self shopping. Understanding exactly why Instacart costs more enables smarter use cases.
