Episode 3: Instacart: Definitive Grocery Delivery Guide & Cost Comparison Instacart: Definitive Grocery Delivery Guide & Cost Comparison

Our Instacart definitive guide and shopping analysis, finds grocery delivery service fees, taxes, and tips add 20% to the food costs that may have a markup over in-store. Importantly, Costco offers the greatest value for consumers, followed by Aldi, Wegmans, and BJ's.

Remember, even buying through Costco from Instacart, you will still likely pay an average online markup of 15%, or more, versus in-store. Therefore, while it offers a nice aspect of optimization for a busy New Yorker, it is not the most frugal and economical source of groceries.

Grocery Delivery Near Me, Now Damn It!

We live in an instant gratification economy. While this might not necessarily be new, technological advancements are increasing the options for consumers.

People increasingly want to use their smartphones via an app, or computer, to place orders online. For instance, they expect short delivery times, in a matter of days, if not the same day, more recently. Web-based services like Amazon Prime, Netflix, and Hulu, among others, offer OnDemand movies and TV shows.

Instant gratification provides significant value for consumers when done right, according to an article written in Forbes, What The Instant Gratification Economy Taught Me About Happiness, by Ashik Ahmed. Within the article, he notes the following;

"In a world where consumers don't just desire instant gratification, but expect it, the window for a startup to impress customers is smaller than ever."

Like many New Yorkers and others, for instance, you want to optimize your limited time. Oftentimes, this means paying a premium to have someone else provide a service that used to be part of daily routines.

For example, this includes the premium an Uber driver charges for door-to-door car service to some remote part of Brooklyn for a loft party. A shoeshine at Grand Central. Dinner prepared by a restaurant and delivered from Grubhub. And our topic of today's discussion, grocery delivery.

Grocery delivery around New York City (NYC) is an increasingly competitive market spanning national services to those more regional. Moreover, there are options galore for consumers, and they appear to be increasing with time. For example, there are many grocery delivery services for NYC, including Amazon Fresh, DoorDash, Fresh Direct, Grubhub, Instacart, Peapod, Postmates, Shipt, TaskRabbit, Uber Eats, Whole Foods delivery via PrimeNow and numerous others!

We are going to focus on one service now, Instacart. Moreover, what are the lowest cost grocery delivery stores from Instacart in NYC? The goal is to provide a comprehensive analysis of the lowest cost grocery stores through Instacart as well as a definitive guide.

Why?

Because we need our guac, now! We are a needy species.

How Does Instacart Work?

First, Instacart differs from some other grocery delivery services because it doesn't have its own stores or warehouses. Rather, it creates relationships with your local grocery stores to offer a delivery service. Second, it merely acts as an intermediary for grocery shopping with no inventory to keep on hand.

In addition, for those more community conscious, it drives local grocery delivery business to stores in your neighborhood. As a user, you gain value from the grocery delivery service, optimizing your life a bit, at a cost of course, while also continuing to support local stores and employment.

Conversely, services like Amazon Fresh, Fresh Direct, Peapod, and others use their own networks of warehouses as the source for your grocery delivery. Instacart, however, utilizes its network of shoppers to visit your local store you have chosen to order from, gather items ordered, then deliver them to your doorstep.

Time needed: 20 minutes. Step-by-Step Guide for Getting Started with Instacart Visit www.instacart.com, or download the app (Apple app here or Android here) for your smartphone or tablet. Enter your email address and choose a password.

Our Instacart definitive guide and shopping analysis, finds grocery delivery service fees, taxes, and tips add 20% to the food costs that may have a markup over in-store. Importantly, Costco offers the greatest value for consumers, followed by Aldi, Wegmans, and BJ’s.

Remember, even buying through Costco from Instacart, you will still likely pay an average online markup of 15%, or more, versus in-store. Therefore, while it offers a nice aspect of optimization for a busy New Yorker, it is not the most frugal and economical source of groceries.

Grocery Delivery Near Me, Now Damn It!

We live in an instant gratification economy. While this might not necessarily be new, technological advancements are increasing the options for consumers.

People increasingly want to use their smartphones via an app, or computer, to place orders online. For instance, they expect short delivery times, in a matter of days, if not the same day, more recently. Web-based services like Amazon Prime, Netflix, and Hulu, among others, offer OnDemand movies and TV shows.

Instant gratification provides significant value for consumers when done right, according to an article written in Forbes, What The Instant Gratification Economy Taught Me About Happiness, by Ashik Ahmed. Within the article, he notes the following;

“In a world where consumers don’t just desire instant gratification, but expect it, the window for a startup to impress customers is smaller than ever.”

Like many New Yorkers and others, for instance, you want to optimize your limited time. Oftentimes, this means paying a premium to have someone else provide a service that used to be part of daily routines.

For example, this includes the premium an Uber driver charges for door-to-door car service to some remote part of Brooklyn for a loft party. A shoeshine at Grand Central. Dinner prepared by a restaurant and delivered from Grubhub. And our topic of today’s discussion, grocery delivery.

Grocery delivery around New York City (NYC) is an increasingly competitive market spanning national services to those more regional. Moreover, there are options galore for consumers, and they appear to be increasing with time. For example, there are many grocery delivery services for NYC, including Amazon Fresh, DoorDash, Fresh Direct, Grubhub, Instacart, Peapod, Postmates, Shipt, TaskRabbit, Uber Eats, Whole Foods delivery via PrimeNow and numerous others!

We are going to focus on one service now, Instacart. Moreover, what are the lowest cost grocery delivery stores from Instacart in NYC? The goal is to provide a comprehensive analysis of the lowest cost grocery stores through Instacart as well as a definitive guide.

Why?

Because we need our guac, now! We are a needy species.

How Does Instacart Work?

First, Instacart differs from some other grocery delivery services because it doesn’t have its own stores or warehouses. Rather, it creates relationships with your local grocery stores to offer a delivery service. Second, it merely acts as an intermediary for grocery shopping with no inventory to keep on hand.

In addition, for those more community conscious, it drives local grocery delivery business to stores in your neighborhood. As a user, you gain value from the grocery delivery service, optimizing your life a bit, at a cost of course, while also continuing to support local stores and employment.

Conversely, services like Amazon Fresh, Fresh Direct, Peapod, and others use their own networks of warehouses as the source for your grocery delivery. Instacart, however, utilizes its network of shoppers to visit your local store you have chosen to order from, gather items ordered, then deliver them to your doorstep.

Time needed: 20 minutes.

Step-by-Step Guide for Getting Started with Instacart

Visit www.instacart.com, or download the app (Apple app here or Android here) for your smartphone or tablet.

Enter your email address and choose a password.

Input your zip code; this will let you know what local stores you can shop.

Select a store to start shopping.

Users can search for or browse items and explore different departments.

Select items you want, choose quantities, then add to your cart.

You can indicate replacement alternatives for items on low, or out of stock.

Special instructions may be added to orders for your shopper.

Go to checkout once you have finished shopping.

Choose your delivery window.

There’s also an option for leaving the delivery outside your door (unattended delivery).

Finally, enter your payment details and confirm your order.

As an example, the video below provided on YouTube by Instacart provides a nice short overview of the process to get you started.

https://www.youtube.com/watch?v=PksAfCz6akw&feature=youtu.be

Where is Instacart Available?

Instacart provides service within various zip codes across cities located within all 50 states plus the District of Columbia within the US, in addition to some locations in Canada.

The company provides broad service across New York State (NYS) and within NYC. That is to say, it includes all five boroughs of Manhattan, Brooklyn, The Bronx, Queens, and Staten Island.

Take a look at Instacart’s grocery delivery service locations on its website. You can enter your zip code or browse states and cities across the US, where they currently provide service.

What happens if Instacart doesn’t deliver to me? You can still visit the same page. Upon entering your zip code, you may choose to be notified when Instacart expands service to your location.  

What Stores Are Available on Instacart?

Available stores from Instacart will depend on your location, plus those that the company has a relationship with. Moreover, you can have a look at Instacart’s locations on its website. Select your state, then city, or simply input your zip code. For instance, check for details on NYS.

Within NYC, there are several familiar faces when it comes to grocery store options. Likewise, these options will vary somewhat depending on your zip code, but many deliver to all five boroughs.

Notable grocery stores include Aldi, BJ’s, Costco, CVS Pharmacy, Fairway, The Food Emporium, Key Food, ShopRite, Wegmans, Zabar’s. Additionally, local wine shops and liquor stores are often available.

Above all, for the frugal shoppers, it is notable that Instacart provides service to Costco and BJ’s. Interestingly, you do not need to have a membership when using Instacart. If you do have one, enter membership information if possible to receive credit or other discounts. Sadly, for many, many New Yorkers, Instacart does not provide service for Trader Joe’s.

How Long Does Your Instacart Delivery Take?

Many first-time Instacart users are curious about how long their grocery delivery order will take. However, this depends on a number of factors, including the availability of shoppers, as well as the demand for Instacart’s service.

Excluding the pandemic of 2020, prior to that, Instacart could often deliver your grocery order the same day if you ordered early enough. Meanwhile, most recently, during the epidemic, grocery delivery services, including Instacart, have been overwhelmed with demand.

As a result, orders have taken longer to fulfill. Nevertheless, over the past week, they seem to be consistently offering next day delivery in NYC. Also, you can set orders for delivery up to five days ahead.

Picture of woman delivering a package.

For those who’ve taken to Twitter and other social media, to complain about grocery delivery times during the virus outbreak, shame on you. Certainly this is a high-class, first world problem. Above all, these complaints are disrespectful to all the workers on the front lines servicing you!

Instacart Delivery Fee, What Does it Cost?

Fees for using Instacart vary and are rather broad. The short answer as to what is Instacart’s fees, is, well, that depends.

Let’s cover some of the most common costs you’ll encounter using the service. Again, remember, using grocery delivery isn’t usually the most economical option, but it does offer an aspect of optimization and automation to your life.

One opinion I’d like to share.

I hate additional service fees!

I’d also venture to guess some other folks out there would be in agreement based on some Twitter commentary.

https://twitter.com/QJohanna36/status/995310175274840064
Twitter commentary regarding the general disdain of service fees at Instacart.
Delivery Fee

The fee for delivery starts at $3.99 and moves up from there based on a combination of order size plus the scheduled time. Similar to Uber, if you are requesting delivery during a peak time, expect to pay a premium.

Instacart does an excellent job notifying you if you are choosing a peak delivery slot. Refunds are possible for the premium delivery surcharge if your order happens to arrive late.

Service Fee & Alcohol Fee

For everyone that is not an Express customer, there is a 5%, or minimum $2, service fee that applies to non-alcoholic items purchased.

There is an additional service fee related to alcoholic purchases, as detailed in the table below, to cover additional costs, such as ID checking. Note, there is no service fee for pick up items.

Non-Members
Express Members

$0-$35 of alcohol: $2.00 fee
$0-$35 of alcohol: $0.80 fee

$35.01-$75 of alcohol: $4.00 fee
$35.01-$75 of alcohol: $1.60 fee

$75.01-$110 of alcohol: $8.00 fee
$75.01-$110 of alcohol: $3.20 fee

>$110.01 of alcohol: $10.00 fee
>$110.01 of alcohol: $4.00 fee

Instacart alcohol service fee.
Heavy Fee

If you’re purchasing bulk items such as cases of beverages and pet foods alongside others, then your order may incur another associated fee. This applies to orders, when these items deemed heavy, exceed 50 pounds. Users will be notified when this fee applies, and you’ll have an opportunity to adjust items if you want to avoid the extra cost before checkout.

Bottle & Bag Fees

The additional fees for bottles and bags are going to vary by state and localities. For those associated with bottles, check out www.bottlebill.org and look at www.ncsl.org for bag fees.

Tipping

Instacart defaults the tip, 100% of which goes to your shopper-delivery person, at 5%, or the amount previously left by the customer. The company suggests a minimum of $2 per order. All tips are optional. However, basic etiquette suggests, if you cannot afford to tip for doorstep services, then you cannot afford them.

Photo of glass tip jar.

Often a 10-20% tip, or $3-5 rule, is proposed, wherein tip the higher of 10% to 20% of the order or $3 to $5 minimum. Remember, Instacart shoppers are not hourly; they are paid a per delivery rate plus a per-item fee. This includes waiting in line at the grocery store, and drive time to your home!

Consider leaving a tip towards the upper end of that range, or in excess, if you’ve ordered during the pandemic, inclement weather, or other unusual circumstances that are more demanding.

Sales Taxes & Other

Sales taxes and other fees are calculated the same as if you were shopping at the store location. Some locations may tax both delivery service and other fees incurred when ordering via Instacart.

Be mindful; this is not all the fees incurred. There is also an Instacart Express members service we will cover, plus the most controversial and convoluted fee, the Instacart markup.

Instacart Express Membership

For the frequent Instacart user, there is the Instacart Express Membership option that might be worth exploring. The price for Instacart’s Express Membership is $9.99 per month or $99 annually.

As an Instacart Express member, your delivery fees will be zero for all orders greater than $35. For instance, this cost usually runs around $3.99 to $7.99 per order. Additionally, it also reduces other service fees of about 5% per order and removes premium delivery costs during peak delivery time slots.

However, I don’t see a reason to sign up for this immediately. I’d suggest you try the Instacart service a few times and determine if it’s right for you, before incurring another monthly or annual membership fee.

The Potential Instacart Grocery Markup

Above all, the possible Instacart grocery markup is the most controversial fee associated with using the service. This Instacart fee is above and beyond all the previous ones detailed, and also the one with the least clarity for consumers. Hopefully, we can provide you a bit of clarity around this fee, what to look out for, and some context.

Does Instacart charge more than my local store?

The answer is, sometimes, but it is actually often the stores controlling pricing.

https://twitter.com/michelletandler/status/1262080202567348224

As you are shopping through the Instacart website or app, the prices you are shown at times reflect a markup premium above your local grocer; other times, they do not. You should take a moment and review Instacart’s pricing information page.

Essentially, what it says, is that grocers set the prices displayed by Instacart, and some of those stores may charge a premium versus in-store. Often this premium above the in-store cost is there to help defer the grocer’s cost for offering its products through Instacart.

Nevertheless, this is often referred to as the Instacart markup when you come across it in social media or news.

How to Check the Grocers Instacart Pricing Policy

Instacart where to check grocery store pricing policy on website to find potential markups.

First, go to the website or app.
Second, from the homepage, select a store.
Third, below the store’s logo, click the “Pricing Policy.”
Finally, here provides detailed information on potential markups over in-store prices.

Same as In-store Prices?

Aldi
No

BJ’s 
No

Costco
No

Fairway
Yes

Key Food
Yes

Morton Williams
Yes

ShopRite
No

The Food Emporium
Yes

Wegmans
No

Instacart NYC area common stores price policy vs in-store.

How much is the markup from purchasing through Instacart if you have to pay? The company has commented before that, on average, the markup is around 15% or more. However, this is an average, and some consumers have found it extends well beyond this in some instances.

When reviewing the stores’ Instacart price policy, some simply state that it varies, others explicitly note higher and some are the same as in-store. A word of caution here, don’t rush to purchase through Instacart at the grocery stores offering the same as in-store prices. In short, they don’t usually offer the best value.

https://twitter.com/nicoleBans/status/781607571413053440
Instacart markup that was rather crazy!

Some previous analysis highlighted in an article at Supermarket News found that the Instacart markup was 23% higher than the in-store price. I would point out this is somewhat dated from early 2016, but likely still relevant. There are numerous other videos and articles online discussing markups that exceed the 15% average for Instacart.

My advice, always check your final bill from Instacart so you understand all fees involved in addition to item prices actually paid. If something seems off, or crazy expensive, then get in touch with customer service immediately. Frankly, this is common sense advice to review your store receipts carefully anywhere you shop. Mistakes happen!

Instacart Customer Service

You have three options for quickly reaching Instacart customer service, all available on its contact page online. Firstly, you can reach Instacart customer service by calling (888) 246-7822. Secondly, you may also email them at [email protected]. Lastly, there is the Instacart Help Center on the website.

Instacart Grocery Cost Comparison Analysis

Now we are finally getting into the value-add of this, how do grocery store prices compare on Instacart throughout NYC. We’ll gather together a shopping basket of similar items. Then we’ll run that through Instacart for various grocers throughout the five boroughs of NYC. Everything will be normalized with prices measured on a per unit, ounce, pound, or another relevant basis.

We also aim to keep brands and sizes comparable across stores when determining unit prices to the extent possible. In addition to grocery prices, we’ll also tabulate and compare delivery and other associated fees. Lastly, any sales or coupons will be excluded as we are looking for the most comparable price across grocers within Instacart, consistently.

The Dummy Shopping Basket

Firstly, our dummy shopping basket we have collected for our experiment includes many everyday items a consumer would purchase at the grocery store. Moreover, the goal is to have a basket of items that will be available across all the Instacart grocery stores we will check in NYC.

Product selected at the various stores should be as fungible as possible, including brands, packaging weight, and quality such as organic and inorganic. These are all factors that could increase price variance within the same product categories.

Worth noting, given recent shortages of meat, we have excluded this item from our shopping basket for this experiment. Additionally, we have excluded alcohol given not all grocers offered this through Instacart, sadly! Overall this should not have a significant impact on our analysis of grocery store prices across Instacart in NYC.

The 15 items below are those included in our dummy shopping basket, for example.

Dummy Shopping Basket 

Bananas

Pepper Cheese Block

Diet Coke Cans 12 Fl oz

Frosted Flakes

Greek Yogurt Non-fat Flavored

Russet Potatoes 

Italian Dressing

Almond Milk Vanilla Unsweetened

Orange Juice Tropicana Pure Premium

Spring Salad Mix

Spaghetti

Strawberries

Tostitos Scoops

Basmati Rice

Whole Grain Bread

Dummy shopping list of common grocery purchases.

Grocery Stores Targeted

Aldi

BJ’s 

Costco

Fairway

Key Food

Morton Williams

ShopRite

The Food Emporium

Wegmans

Instacart grocery stores targeted across the five boroughs (not all inclusive).
Grocery Store Prices Are Consistent Across the Five Boroughs

As we started to run our experiment, something unexpected occurred. Originally, we envisioned a breakdown of various grocery store costs, segmented across the five boroughs of Manhattan, Brooklyn, Queens, The Bronx, and Staten Island.

In our hypothesis, we believed shopping through Instacart, at Key Food, for example, with the same basket of items, would yield different prices across different boroughs of NYC. Strikingly, this was not the case when we started to collect and compare the data.

We checked a basket of items across both Costco, and Key Foods, for delivery addresses in Manhattan, Brooklyn, Queens, The Bronx, and Staten Island. There was no notable variance in price. For full disclosure, we did find a one-cent difference in the bag of Basmati Rice from a Costco in Staten Island, but all others were the same.

As a result, we discontinued the same grocery store comparison from borough to borough, now working under the assumption that prices remained constant from each individual store within the city.

Instacart Delivery Fees Differ Across the Five Boroughs

While the grocery basket of item prices did not show variance across the boroughs in NYC, Instacart’s delivery fee did change. We found this to be an interesting takeaway that was unexpected as well.

It seems The Bronx is advantaged with a $3.99 Instacart delivery fee, based on an $89 order, that was lower, than the other four boroughs. So congratulations to The Bronx, 1520 Sedgwick Avenue, the birthplace of hip-hop, and home to low-cost Instacart deliveries.

Instacart delivery fee across five boroughs

Instacart All-In Delivery Fees Including Taxes & Tips Run Around 20%

Ordering groceries via Instacart benefits users instant gratification neediness and allows them to optimize daily life a bit more. It does not offer the most economical option for grocery purchases, which we will touch on shortly. With that said, all-in Instacart delivery fees can add a significant cost to your food expenses.

All-in Instacart fees include delivery, service, taxes, and tips. We assumed a 10% tip rate on all orders across grocers. Other fees varied slightly based on order sizes, and quantities of specific taxable items, such as soda, and other factors.

Total instacart grocery order cost by store.

These all-in Instacart fees added between $13 to $38 per grocery order, for instance, mostly dependent on the weight, and quantities within the orders. Aldi was least at $13 in fees due to the lowest order value of $43, whereas Costco was greatest, with fees at $38, on the highest $156 purchase.

Normalizing the data, and viewing costs on a percentage basis, all-in Instacart fees averaged about 20%. Due to our 10% tip assumed, roughly half of the all-in cost from ordering from Instacart is associated with tipping based on our dummy basket of shopping items.

All-in instacart fees, taxes & tips percentage of total order.

Generally, placing larger value orders through Instacart results in a lower percentage of all-in fees. Looking at both the Costco and BJ’s orders, the two highest, all-in fees were some of the lowest, below the 20% average. The opposite is also sometimes, but not always true, with smaller order sizes. Aldi, the smallest order, actually incurred the highest percentage all-in fee at 23.6%.

Bulk Warehouse Grocers Like Costco & BJ’s Offer Value Through Scale

Shopping bulk warehouse clubs, like Costco and BJ’s, through Instacart, often offers some of the best value for consumers. Certainly there are economies of scale for these companies, and part of these savings are passed on to the consumer.

Instacart grocery order unit price vs total order weight.

Bulk purchase options offered by warehouse clubs simply are not available elsewhere. This is what you’re paying for when paying your membership fee. But recall, when ordering via Instacart, you don’t need to be a warehouse club member.

Alternatively, I have also found more limited choices of items when shopping at these warehouse clubs. That can be somewhat of a negative tradeoff.

As a result of normalizing our purchases based on a dollars per unit weight, we were able to construct a graph comparing this versus the total weight of groceries purchased. What it generally illustrates is, buying greater quantities of groceries, results in lower unit costs. Note, however, this is not always true as we’ll touch on next.

Aldi & Wegmans Offer Value for Smaller Purchased Quantities

We found that despite smaller order quantities of grocery items, both Aldi and Wegmans can offer significant value for consumers. While each of these grocers through Instacart is slightly more costly than Costco, they are often lower or comparable to BJ’s.

So for those New Yorkers, cramped for refrigerator and pantry space, which is a large portion of us, Aldi and Wegmans might offer a better alternative versus warehouses. Additionally, there is something to be said about food waste here too.

According to the United States Department of Agriculture (USDA), its Economic Research Service estimated 31% of US food, is lost at the retail and consumer levels, at an estimated value of $161 billion as of 2010.

Generally, it is believed that between 30% to 40% of the US food supply is wasted annually. Similarly, the US Environmental Protection Agency estimated for 2010, each person, on average, wasted 218.9 pounds of food annually.

I’m guilty of this myself, and my partner clearly reminds me, each time I place an order for Costco groceries. Three pounds of organic baby carrots is a lot!

Let’s move on to the conclusion of our analysis.

Costco, Aldi, Wegmans & BJ’s Offer Best Value for Consumers Through Instacart

As a result of our analysis, looking at unit dollar costs by weight, utilizing a fungible food list of items across NYC grocers, we find that Costco offers the greatest value for consumers purchasing through Instacart.

Instacart grocery store unit cost comparison.

Costco likely benefits versus some other peers because of economies of scale, passing value on to consumers, plus its membership revenues, that in part, allow it to offer more competitive unit prices. Given Costco is the most competitive, for the basket of groceries, on a unit basis, it becomes our base measurement that will equate to 100. All other grocers will be benchmarked off this.

Costco sign.

Next, coming in second, is Aldi, with its unit prices 5% higher relative to the Costco base. Frankly, I was impressed by this, but admittedly have limited knowledge of the grocer. Moreover, we previously had one near our old neighborhood but had patronized Costco instead of Aldi.

Consequently, it is the same parent company to Trader Joe’s, there are many similarities between the two grocers. For instance, many items offered at Aldi, like Trader Joe’s, are a store brand as opposed to the name brand. As a result, this likely gave Aldi some edge in the analysis, given the lack of name brand items, and the need to substitute store brands in place of that.

Moving on, both Wegmans and BJ’s generally remained low cost and provided good value for consumers. Prices are a little more than 20% higher versus Costco. Thereafter, prices tend to step up more considerably with other grocers.

What I would call mid-cost grocers within Instacart, are Fairway, which was 43% higher cost than the base, and ShopRite that was 50% above.

Rounding it out are the high-cost grocers on Instacart, including Food Emporium at 78% above the base, Key Food that was 90% higher, and coming in last, Morton Williams at 106% higher unit prices versus Costco.

By the time we get to the highest cost grocer, a consumer is paying more than double the unit price to shop at Morton Williams through Instacart versus Costco.

Above all, the Key Food ranking surprised me. I suppose this is because I frequently used neighborhood stores, living in various locations of NYC, since moving here. C’est la vie.

Before rounding out our discussion on Instacart, we’ll touch on one last item for the hustlers of the world, employment.

Instacart Shopper, Instacart Driver, Instacart Jobs!

Are you looking for a side hustle? Or perhaps a more permanent job? Have you considered jobs at Instacart?

Check out the careers section of Instacart’s website. According to its website, they have more than 300 retail partners, 200,000 shoppers across 5,500 cities. Based on recent news, I’d venture to guess this data is stale.

According to a CNN article late March 2020, due to surging grocery delivery demand amid the coronavirus, the company planned to higher an additional 300,000 employees creating significantly more Instacart jobs.

So how much does Instacart pay shoppers?

Woman shopping in market wearing face mask.

The Ride Share Guy recently interviewed an Instacart shopper in late April 2020, which provides some insights into wages during the coronavirus.

Firstly, let’s touch on some terminology.

Researching the roles, you will often hear them referred to as Instacart shopper and Instacart driver. In fact, these are one and the same, according to the company, that describes the role as a full-service shopper.

This includes both the in-store shopping role as well as the delivery driving to the consumers’ doorstep. Technically there is an in-store shopper role at Instacart, but this is most often a part-time position.

For instance, according to The Ride Share Guy interview, an Instacart full-service shopper delivering the groceries earns around $13 to $25 per hour in 2020. During the coronavirus, this has been closer to $25 per hour for the role. This includes what a worker would earn from Instacart plus tips.

Additionally, there are sometimes bonuses for select cities where they need more employees. Importantly, I’d suggest checking out the website and read The Ride Share Guy’s writeup titled How Much Does Instacart Pay?

Woman pushing shopping cart with sunglasses.

Not everything is rosy working for Instacart. One must consider the risks of these types of frontline jobs during the coronavirus. Additionally, according to a Vox article, workers at Instacart as well as Amazon and Target held a one day strike in May 2020, protesting for safer work protections amid the virus.

Further, there was a bit of a debacle in 2019. It was found that Instacart was subsidizing employees’ hourly wages with tips customers were leaving, according to a Tech Crunch article. The company’s CEO has since pivoted, and now 100% of tips are provided to employees.

More recently, some Instacart customers have been reportedly tip-baiting during the coronavirus. For example, the way it works is, according to a CNN article, a customer incentivizes an Instacart shopper to complete an order by offering an extraordinary tip, say $50. Once the order is completed by the Instacart employee, the customer then modifies the tip to something lower, or in some cases, to zero.

https://twitter.com/oliverdarcy/status/1248660399127396352
Reports of Instacart tips bait-and-switch during the coronavirus.

This bait-and-switch is absolutely despicable, in my opinion. Instacart and other companies should stand up for their employees and begin banning users of this egregious practice during the virus.

Instacart Promo Code
Window sale sign pictured.

Finally, there are several sources listed that can offer an Instacart promo code.

Instacart Promo Codes

Business Insider

RetailMeNot

Groupon

Coupon Follow

CNN

Instacart select promo codes for discounts.

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