Instacart looked like a savior, now stores aren’t so sure
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Jaewon Kang
, The Wall Street Journal
Some supermarkets plan to stick with delivery service despite fees; Instacart says it lets grocers expand e-commerce without building their own infrastructure
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Grocery-delivery service Instacart Inc. once seemed like the perfect partner for supermarkets looking to break into e-commerce. After several years together, though, some grocers are starting to question the relationship.
Instacart’s technology provided a ready-made solution for grocery chains that hadn’t yet created options for customers to shop online. And it became even more attractive when delivery demand ballooned with the pandemic, providing armies of on-demand shoppers to fulfill orders in-store and deliver groceries to people’s homes.
Dec. 28, 2020 5:30 am ET
Grocery-delivery service Instacart Inc. once seemed like the perfect partner for supermarkets looking to break into e-commerce. After several years together, though, some grocers are starting to question the relationship.
Instacartâs technology provided a ready-made solution for grocery chains that hadnât yet created options for customers to shop online. And it became even more attractive when delivery demand ballooned with the pandemic, providing armies of on-demand shoppers to fulfill orders in-store and deliver groceries to peopleâs homes.
But many supermarkets say they arenât making money through Instacart, largely because the delivery company typically charges them a commission of more than 10% of each order. Some of Instacartâs retailer partners say the service holds too much control over customer interactions and expect it to take an increasing share of money that food makers spend on marketing.