Dive Brief:
- Instacart has become more transparent about whether its prices match those of the stores customers are ordering from, and—when they are higher—by how much and why, according to Re/code.
- The company, seeking growth but facing increased competition, is relying less on such markups and more on deals with retailers and delivery fees.
- Most products are no longer marked up by the delivery service. Re/code notes that Costco items are still marked up by at least 15%, which could mean Instacart has no agreement with that retailer. Instacart would not comment, according to Re/code.
Dive Insight:
Grocery delivery is an increasingly hot and crowded space these days, and as long as it stays that way, the customer will remain in control. Intense competition, especially in certain areas, means there’s little room for marking up the price of goods (or even delivery fees themselves). Although Instacart is an established service, it must make adjustments like these to keep its customers—and grow.