Instacart Delivery Services Explained: Cost, Tips, and Fees in 2023

With the ongoing pandemic and many people preferring not to go grocery shopping in person, Instacart has seen a surge in daily downloads. This comprehensive guide will break down how Instacart works, its business model, and the costs associated with its services. For starters, please, please, please tip generously!

An On-Demand Grocery Delivery App Business Model

Instacart operates on a business model that makes money from commission, subscription, and service charges. Here are the details:

Commission Model

In this model, Instacart charges different commission rates for different products, based on demand and popularity. This means that certain trending items may carry a higher commission rate.

Subscription Model

A subscription-based model offers various plans, such as Instacart Express, which provides free delivery on orders over $35 for a yearly or monthly fee.

Service Charges

Service charges are an earnings strategy that Instacart uses to offset operational costs. These charges can include delivery fees, pick-up fees, and service fees for handling heavy items.

How Much Does It Cost to Get Groceries Delivered by Instacart?

Cutting through the complexities, here's a breakdown of the costs involved in using Instacart's delivery services:

Delivery Costs

Your first order with Instacart is free. Non-Express members can opt for same-day delivery for $3.99 on orders over $35, while Express members enjoy free delivery with the same threshold. However, during peak shopping seasons, delivery fees can rise to $10 or more per order.

Grocery Costs

Instacart doesn't set prices; these are determined by the individual stores. You might need to spend more than you would in a physical store, and you can sometimes miss out on in-store deals. Nevertheless, you can still find special offers like 'Buy one, get two free,' which can save you money.

Tipping

Tipping is strongly encouraged. We generally recommend at least 10% to 20% of the total bill. In these times, a higher tip is even more appreciated, as Instacart shoppers may be working because it pays well.

In 2023, How Much Will Instacart Cost?

Dive deeper into the costs associated with Instacart in 2023:

Minimum Purchase Quantity

Instacart requires a minimum order amount of $35 for delivery, but this threshold can be lower for pick-up orders.

Delivery and Pick-up Fees

Standard delivery fees are $3.99, with peak season charges potentially reaching up to $10. Pick-up fees start at $1.99 and can go up to $7.99. Urgent delivery costs an additional $2. Delivery and pick-up rates tend to rise during high shopping periods.

Service Fees

Service fees are charged on delivery orders and cover standard service costs as well as bag fees and heavy item fees.

Delivery Suggestions

Instacart recommends tipping at least $2, though $5 is more common. A higher tip is excellent, especially if you're using Instacart frequently and justifying an Express membership, which can save you on service fees and eliminate delivery charges.

Cost of Coding an On-Demand Grocery App

The cost of building an on-demand grocery delivery app is influenced by various factors:

Technical documentation: $1,000 to $2,000 Quality Assurance and Testing: $2,000 to $4,000 UI/UX Design: $1,500 to $3,000 Front-end and Back-end Development: $10,000 to $20,000

The average cost to build an app like Instacart is between $10,000 and $20,000 for a single platform (Android or iOS). Costs increase with the number of features.

Understanding these costs and details can help you make an informed decision about using Instacart and eventually building your own on-demand grocery delivery service.