"Instacart says most of its retailers charge more through its app than in stores..." Business Insider 11/8/23

[progree]

Various excerpts. No paywall.
https://www.msn.com/en-us/money/companies/instacart-says-most-of-its-retailers-charge-more-through-its-app-than-in-stores-confirming-what-gig-workers-and-shoppers-have-suspected-for-years/ar-AA1jCysr

Instacart says most of its retailers charge more through its app than in stores, confirming what gig workers and shoppers have suspected for years, Business Insider, 11/8/23
,,, just under one-third of the retailers you can order from through Instacart charge the same for their products through the delivery service as they do in their stores, Instacart's CEO said Wednesday. Instacart CEO Fidji Simo said Wednesday that the company encourages retailers to stick to in-store prices.

Gig workers have long noticed the difference in pricing. When a shopper checks out with an order, they usually receive a paper receipt with the in-store prices. The customer, meanwhile, receives an emailed receipt where the prices of items might be higher than on the paper receipt.

An Instacart policy prevents shoppers from giving customers the paper receipt. Still, some customers get ahold of it anyway and realize how much some items are marked up. One customer in Southern California complained on TikTok in July when she realized that Instacart charged her over $500 for items that cost $435 at a Ralph's grocery store ((that's a 15% markup -- Progree)). The difference did not include fees that Instacart charges or a tip for the shopper.

Customers are often taken aback when they see the markups, shoppers have told Insider.

"If I gave all my customers receipts, they would stop using Instacart," one shopper in Oregon previously told Insider.

Having been ill for the last nearly 4 months, I've been using a similar grocery shop and deliver service called ShipT. No doubt its the same there. I can't wait until I'm able to go to the grocery store again. As for these shopping services saving time, that's B.S. at least for me who checks what I ordered vs. what I was charged for and what I got.

Also, on selecting items, they show a picture of the front of the can or package, and I often have to Google to find a picture of the back side or for other information on the product. In the store all I have to do is look at it.

[Demovictory9]

1. $65 is a big difference. Wow

[NCIndie]

2. This is true of other apps, too

I was shocked when I tried to used one of the food delivery apps at how much it was going to cost. For a burger, fries, and drink, the cost was over $30. Just adding the listed price of the food came to $18, and there were two sets of fees and the additional tip.

Being really cheap, I decided to walk the 25 minutes to get my food. Not only did I avoid the fees, I paid less than $14 including a 20% tip.

[progree]

4. "I decided to walk the 25 minutes to get my food. " - and then there's the exercise benefit

that one does't get sitting at the computer.

[NCIndie]

6. For sure!

I had justified the initial attempt because I was really busy....

[Bristlecone]

13. You are right. DoorDash menus are almost always more expensive that in the location

Although I had assumed that this was a DoorDash markup. Maybe It's both.

[hlthe2b]

3. Yes. No doubt. They likewise claim to be able to fulfill orders that include items they know are

not available in the locale.

Nope. Even during COVID, I just refused. Not only the expense, but I just prefer to shop myself.

[multigraincracker]

5. Nothing they hate more than a bunch

of old retired folks with computers and lots of time.
Makes all the money they spend on marketing a total waste.
As I told the roofing company, bad news makes it around the world before good news makes it across the street. They agreed and begged me to stop.

[TwilightZone]

7. Shipt doesn't mark up items from Target ordered through the Target website or app.

Target owns Shipt, so they don't have to bake in fees for a third-party. Shipt does charge more for some items and from some stores if ordered through the Shipt site or app. We order a lot of groceries from Target through the Target site, and there's no mark-up vs. the in-store prices.

We also get delivery from HEB, a grocery chain here in Texas. They charge about 3% more for items purchased curbside or delivery, but they're upfront about it -- it's noted on their website and when you use the services.

[onecaliberal]

8. Big difference. And it's like 20 dollars in fees above whatever the order costs.

[claudette]

9. The thing is

at Wegmann's on Instacart, they tell you upfront that the prices are higher than in-store prices. I believe it's to pay for the privilege of having someone do that shopping for you - and for storing the order until it's time to be delivered.

[progree]

10. I haven't seen a disclosure like that at ShipT.com

But I'm not at all surprised. It would be nice to know what the markup is.

I pay the shopper well through tipping but I realize not everyone does. Plus I pay ShipT a $99 annual fee, but I realize that doesn't come to much when divided over say 30 or more shopping "trips" a year.

Edit - And I'm guessing that ShipT charges the store a fee in return for a considerable volume of business.

[claudette]

11. The only tip

that is included is the minimum amount is high is included in the total price. It is for the driver who delivers the order. Sometimes it’s the shopper but sometimes it isn’t. And there’s a way to change the amount if needed

Instacart was a godsend during the pandemic. So much so that I continue to use it to order groceries that Target does not deliver. I use Target for all other shopping including groceries, with a discount and free shipping for orders $35 and over.

[progree]

14. I believe in all cases so far with ShipT, the shopper is also the driver

I'd still like a little more transparency on how much they mark up the prices. Maybe because I'm an old-style lefty, dunno.

"The only tip that is included is the minimum amount is high is included in the total price"

ShipT claims the entire tip goes to the shopper. And yes, with ShipT one can change the tip too. And yes, ShipT is free delivery for orders $35 or more.

Another thing is that I can't use coupons, or if I can, they certainly don't make that known very well or I'm obtuse. That's a lot of savings. Stores spend a lot of money to print coupons in circulars and newspapers, and I'm sure thay appreciate shoppers who pay full price for everything.

"Instacart was a godsend during the pandemic. "

Well, for me ShipT (or Instacart or whatever grocery delivery service) is a necessity for me until I become mobile again.

[claudette]

15. Good luck

Hope it will be soon.

[progree]

16. Thanks! 😊

[Wonder Why]

12. I noticed how they refuse to deal with businesses that cheat their customers - NOT!

[bucolic_frolic]

17. Yay, Racket! Are you being served? /nt