Instacart slashes prices as delivery competition heats up

Grocery delivery service looks to entice shoppers away from companies such as Amazon


Instacart has made changes to its pricing in Canada and the U.S, making the service a more competitive and cost-feasible option than companies such as Amazon.

In a Nov. 28 e-mail from the third-party service to its customers, Instacart said it had dropped its delivery fee in the U.S. from $5.99 to $3.99 per order of $35 or more, though customers still pay a 5% service fee and $3.99 default delivery fee. Orders arrive within two hours of placement. In Canada, shoppers were already paying $3.99 for the a la carte service so that remains unchanged. The company has, however, lowered the service fee to 5% from 7.5%, according to a company spokesperson.

Additionally, the annual subscription fee to the company’s Instacart Express service dropped by $50 to $99, which is what Canadian members have been paying. Though the annual fee remains unchanged north of the border, the company dropped the 7.5% service fee.

“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 e-commerce 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.

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