June 16, 2022
Instacart Express is out and Instacart+ is up. The retail delivery service renamed its subscription plan and expanded its focus from just one person in a household to the whole family.
The updated plan allows family members to share a single Instacart+ subscription and makes it easier to place orders. Service includes free shipping on orders of $35 or more, 5% credit on qualifying pickup orders, and reduced service fees.
Family Accounts allow everyone in the household to make sure their favorites are included in rides. The service has a family cart feature where members of a household can shop and fill carts together.
Instacart is celebrating the launch of its updated program through a link with Chase that will allow cardholders to get free memberships. Sapphire Reserve cardholders get a one-year free subscription, Sapphire Preferred members get six months, and Freedom and Slate members get three.
“We’re making Instacart+ the most cost-effective way for families to shop for groceries and essentials with Instacart, delivered in as little as 30 minutes.” Daniel Danckerchief product officer at Instacart, said in a statement. “In addition to free shipping on orders over $35pickup credit and reduced service fees, subscribers can now share Instacart+ with another person for free and shop together to make ordering truly effortless.
Instacart has been looking for ways to grow its subscriber base by offering delivery and pickup at a time when more Americans are heading to stores to buy groceries rather than shopping online. as they have done for much of the pandemic. The company has also expanded its delivery program to include non-grocers.
A higher number of followers is essential to Instacart’s business plan which calls for generating a higher percentage of sales and profits from digital advertisements.
Advertising week in January reported that Instacart’s ad network grew “fivefold” in 2021 to $550 million. That number is expected to reach $795 million this year, according to eMarketer forecasts.
Instacart recently announced the launch of Buyable video and display ads with Dove, Mondelēz International, PepsiCo and S.Pellegrino among the first consumer packaged goods brands to ship.
CNBC last month announced that Instacart had filed an initial public offering proposed registration statement with the United States Securities and Exchange Commission.
DISCUSSION QUESTIONS: Do you think Instacart+ will be successful in getting members of a household to add items to a family cart prior to purchase? Is this a feature you expect from other retailers?
“I’m not sure Instacart has put all the depth into it that a group shopping list/wishlist really needs, but I have to give them some props to try.”
“These updates to the Instacart membership model reflect a strong focus on consumer behaviors. This is how consumers want an online shopping subscription to work.”
“Couldn’t people in the same household just share the same ID if they needed these features?”