Instacart started in 2012 as a service that delivers groceries to you. They shop for what you need and deliver it to your home or office or wherever you want. Instacart not only provides products from multiple brands but offers a safe delivery service at the comfort of your home.
How does Instacart make money?
Contents
1. Brand Partnership
Instacart has also partnered with big outlets like CVS, Sephora, and Best Buy to directly provide same-day transport for any of your purchases in the shops.
Similarly, on Instacart, you will find many different stores that are partnersto the company. As a result, these stores are paying Instacart to use its services.
You can take the example ofBest Buy. The brand pays Instacart to allow its customers to purchase from the Best Buy store. And Instacart sends a person to pick up the order from the store and deliver it on the same day.
From the viewpoint of these retailers,it makes no senseto invest in the infrastructure of same-day delivery service. It is because they are not in the delivery market. Instead, they can pay Instacart a service fee and pass all logistics and delivery to them. Besides that, Instacart can also run background checks and ensure that customers receive their orders on time.
2. Advertising
The second way the company makes money is via advertising.
The majority of the products purchased and sold on Instacart are consumer packaged goods. A store can use the Instacart ad platform to promote its items. And stores may avail itby using coupons or discount offers on a certain product. Thus, it is similar to the use of posters and banners for ads in a grocery store. When you shop for items online to make money with Instacart, you will have the same kind of experience.
3. Delivery and Service fees
Instacart charges a certain amount of money for the delivery and an extra 15% service fee. The additional charges are for you to use their platform. And for the convenience of shopping for your groceries right from the comfort of your home.
How does Instacart work for drivers?
There are two ways to shop for Instacart. The first one requires you to work as a full-service shopper. You will be an independent contractor and go to grocery stores to shop for customers’ orders. You will then deliver it to the customer.
The second option requires you to be an in-store shopper. But this job will not require you to drive. You will need to shop in stage orders in one store at a time.
So, how does Instacart work for a driver or a shopper?
As an Instacart shopper, you will see available batches of shops in your Instacart app. But before accepting a batch, you will need to check some things.
- Look up the grocery store’s distance from your current location as well as the payment. Before you accept an order, the app will show you what to expect. It is also worth noting that it includes the tip from the customer.
- Calculate the pay per item for goods that Instacart delivers. With that expected tip, you will need to add the payout of the gross sales. Plus the number of things you will be purchasing.
Since more items typically equal more time, you will want to make a good sum per item. And if there are more items, the batch gets more time.It is a high pay delivery if you can get a batch with one dollar per item, or better yet, $1.25.
- After you accept the order, the app will give the store’s location along with a breakdown of all the items.
- The app will also provide a to-do shopping list on the menu screen. You can select the correct item from the store based on that item image on the app and description.
- The next step is to scan it, and the app will confirm if it is the right item. In case of unavailability, notify the customer to choose a substitute product or a refund.
How much do Instacart in-store shoppers make?
As mentioned earlier, an in-service shopper is someone who solelyworks inside the store. Your job is to purchase the grocery for the customer and hand it over to the delivery driver.
The gig is perfect for someone who does not own a car or does not want to drive around much. Also, you can avoid gas expenses, wear and tear maintenance.
It has flexible working hours, and you will be able to make money at your own time. An in-store shopper has the option to choose the number of hours they want to work in a day. The minimum working hours in a day is two hours, and the maximum is eight hours.
The pay isdirectly related to how much the cost of living is in your region. But $16 an hour is usually the going rate for most areas.
Instacart pay breakdown
It is the delivery order that determines the pay of full-time shoppers. Also, Instacart offers guaranteed payment for every order made by the customers. Through each delivery, shoppers can earn as much as or even more than $5.
Regarding the full-service option, which includes shopping and delivery, a per order-pay of $7 to $10 is possible. Also, the shopper’s pay depends on the distance, the types of items and their numbers, etc.
How to make the most money with Instacart?
Shopping quickly is the secret to making money as an Instacart shopper. You could make $12-$14 an hour if you shop slowly. However, if you shop quickly, you can make $25-$30 per hour on a regular basis.
- Don’t worry about the due time. The time that customers see has to do with your metrics. So focus on getting the order done and doing a good job.
- You must always come prepared. Be sure to keep coolers and large bags to carry multiple items while delivering.
When you’re picking up the delivery, grab as many carts as you need. By doing this, you will not waste time searching for an extra cart while shopping.