Instacart is a grocery delivery service that promises to deliver groceries to your door in as little as an hour.
Prices for Instacart can be significantly higher than what you would pay at the store, so some customers are wondering, “Does Instacart mark up food prices?”
In this post, we’ll take a look at what pricing strategies Instacart uses and whether or not they mark up prices, and how much you’ll pay for the convenience of using the service.
Table Of Contents
Does Instacart Mark Up Food Prices?
The short answer is yes, Instacart does mark up food prices.
However, the extent to which they do so varies depending on the item.
How Much are Prices Marked Up on Instacart?
According to the company’s co-founder, Instacart charges more than at stores, with an average markup of around 15%.
While the average is around 15%, the markups differ across the various stores that use Instacart, as well as vary by product.
For some items, the markup is only a few percentage points. For others, Instacart marks up prices by as much as 50%.
Which Stores Mark up Prices More on Instacart?
The stores with the highest markups on Instacart are generally luxury grocery stores, like Whole Foods and Bristol Farms.
Discount stores, like Trader Joe’s and Grocery Outlet, have much lower markups.
Are Instacart Prices Higher for ALDI?
Instacart may inflate prices to account for the cost of personal shopping and delivery.
However, this does not mean that ALDI is not the cheapest grocery store in town.
Price comparisons between Instacart and ALDI still show that ALDI is the more affordable option.
Read more: How ALDI delivery works for customers
How Much is ALDI Instacart Markup?
The Instacart markup for ALDI is only about 17%.
This means that the prices on Instacart are only about 17% higher than the prices at ALDI.
While this may seem like a lot, it is important to remember that Instacart also includes delivery fees in their prices.
When you compare the total cost of groceries from Instacart to ALDI, the price difference is not as drastic.
Are Instacart Prices Higher for Costco?
Costco is one of the most popular stores on Instacart.
However, some people have noticed that the prices of items on Instacart are often higher than the prices at Costco.
Is this because Instacart is marking up the prices?
Or is it because there are additional costs associated with personal shopping and delivery?
The truth is that Instacart does mark up the prices of some items.
However, this is only done to cover the cost of personal shopping and delivery.
Instacart is a very expensive service, and without these markups, the company would not be able to remain in business.
How Much is Costco Instacart Markup?
The markup for Costco items on Instacart is typically about 20%.
This means that the price of an item on Instacart will be about 20% higher than the price at Costco.
This may seem like a lot, but it is important to remember that Instacart also charges a delivery fee, which can be quite expensive.
In addition, the cost of personal shopping and delivery must also be taken into account.
Overall, the markups on Instacart are fairly small, and they are necessary to cover the cost of providing this service.
Why Does Instacart Charge More Than the Store?
There are a few reasons for this.
First, Instacart has to pay its workers.
The company does not employ any full-time workers; instead, it uses a network of independent contractors who deliver groceries.
These contractors are paid per order, so the more orders they complete, the more money they make.
This means that Instacart has to charge more than the store in order to cover its costs.
Second, there are added costs associated with using Instacart.
The company has to pay for deliveries, which means that customers who use the service are paying for both the groceries and the delivery.
Finally, there’s the convenience factor.
People are willing to pay more for something that’s easy and convenient, and that’s what Instacart offers.
What About Membership Fees?
In addition to markups, Instacart also charges membership fees in the form of Instacart Express.
These fees range from $99 per year to $399 per year, and they give customers free delivery on orders over a certain amount.
This is yet another fee and cost to look out for in the attempt to save a few bucks on your order with convenience.
Which Stores Don’t Have a Markup from Instacart?
Some shoppers are outraged at the idea that they are being charged more for groceries bought through Instacart.
But, it’s important to remember that Instacart is a personal shopping service.
The company doesn’t just pick up items from the store and deliver them to your door.
Someone has to go to the store, pick out your groceries, and bring them back to the Instacart warehouse.
All of that costs money.
If you still can’t get behind the idea of markups though, check out these alternatives – stores that don’t have a markup from shopping online.
1. Target’s Online Grocery Delivery
Target offers online grocery delivery for a flat fee of $11.99, with no markup on the items.
These orders are fulfilled using Shipt drivers, Target’s on-demand workforce of delivery fulfillment contractors.
You can order as little as $35 worth of groceries, and there is no delivery fee for orders over $75.
Target also offers a variety of promotions and discounts on groceries, so it’s a great option if you’re looking to save money.
- Interested? Learn more about the cost of using Shipt.
2. Giant Eagle Online Grocery Delivery
Giant Eagle offers online grocery delivery for a flat fee of $12.95, with no markup on the items.
You can order as little as $35 worth of groceries, and there is no delivery fee for orders over $100.
3. Whole Foods Online Grocery Delivery
Whole Foods offers free grocery delivery and pickup, both of which are free if the ordering customers have an Amazon Prime membership.
There is no markup on the items, as Amazon remains steadfast in their mission to balance convenience with low prices.
Instacart is a great way to save time and money while still getting the groceries you need.
Yes, they do mark up prices, but that is what you pay for when the convenience of the service is evident.
The app offers coupons and discounts that make it worth your while.
Plus, if you’re looking to grocery shop on a budget, Instacart can be a huge help.
So what are you waiting for?
If the convenience is worth the cost, download the app now and start saving!