Instacart prohibits shoppers from providing paper receipts to customers. Here’s why.

Instacart prohibits shoppers from providing paper receipts to customers. Here's why.

The Hidden Costs of Instacart: Markups, Fees, and Unhappy Customers

Instacart, the popular grocery delivery platform, has become an essential service for many during the COVID-19 pandemic. While customers enjoy the convenience of having groceries delivered to their doorstep, some recently discovered a hidden cost: markups on items bought through Instacart. In addition to paying various fees and tipping, customers are often surprised to learn that they’re paying more for items through the app than they would in-store.

Every time an Instacart shopper fills an order, the app reminds them not to give the customer the paper receipt from the store. However, some receipts still end up in customers’ hands, and it is during these moments that they realize the markups on their purchases. TikTok user vane.ssota recently posted a video showing the paper receipt from an Instacart order, comparing it to the receipt emailed by Instacart. Every item on the order had been marked up by between 50 cents and $2. For vane.ssota, this meant paying $513.77 for $435 worth of groceries, plus fees and tip.

The markups can add up quickly, especially on large orders. One Oregon-based shopper mentioned that if they were to provide receipts to their customers, it would likely discourage them from using Instacart altogether. This is a concerning discovery, as customers not only pay for the convenience of having their groceries delivered but also expect to receive fair prices.

Instacart’s website does acknowledge that some retailers charge higher prices for items ordered through the service, and customers can view a retailer’s pricing policy within the app. Instacart also emails customers a breakdown of their prices once the order is delivered. However, this information often goes unnoticed until a customer sees the physical receipt from the store.

The markups are not limited to specific items or locations. A shopper from Virginia shared an example where packs of soda were on sale in-store for four packs at $12. However, on Instacart, customers were charged $8.99 per pack, regardless of the number of packs ordered. Similarly, in North Carolina, another shopper discovered an expensive bottle of wine priced at $199 in-store, but sold for $241 on Instacart. These markups, particularly on meat and alcohol, have customers feeling taken advantage of.

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Meanwhile, Instacart shoppers, the gig workers fulfilling the orders, do not directly benefit from the markups. In fact, most of them receive minimal base pay and rely heavily on tips from customers. Instacart recently reduced the base pay from $7 per order to a minimum of $4, further straining shopper earnings. The markups and fees go to Instacart, while shoppers struggle to make a living.

While some retailers advertise that their prices on Instacart are the same as in-store, many others do not clarify this distinction. This lack of transparency can leave customers feeling deceived and frustrated. It is crucial for Instacart to communicate these markups more effectively to avoid further customer dissatisfaction.

The overall experience for customers using Instacart can be greatly improved by addressing these markups and increasing shopper pay. Customers deserve fair prices and transparency, while shoppers need just compensation for their work. Instacart should find a balance that benefits all parties involved and ensure that everyone feels valued.

Have you had an experience with Instacart that you’d like to share? Reach out to us at [email protected]. We’d love to hear your story.

• Delivery
• Grocery
• Retail