The Rise Of Instacart And Online Grocery Delivery

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Online grocery delivery is seeing exceptional growth amid the coronavirus. Over the last few weeks, Instacart has seen customer order volume increase more than 500% year-over-year. But after the coronavirus, will demand for these online services stick?

Thousands of small businesses have closed due to the coronavirus outbreak in the United States. But one sector that's seen exceptional growth is online grocery delivery.

A recent survey by RBC Capital Markets in March found that 55% of respondents had purchased groceries online, up from just 36% in 2018 and 15% in 2015 . Online grocery delivery service Instacart told CNBC that demand over the last few weeks has been the highest in the company's history and that customer order volume is up more than 500% year-over-year.

Once a luxury, the coronavirus pandemic has transformed grocery delivery services like Instacart and Amazon Fresh into essential seemingly overnight. But whether or not grocery delivery will become mainstream in the long run will depend on how ther perform now.

"This has been a major potential customer acquisition opportunity for the Instacarts of the world, the Amazon Freshes of the world. All consumers are turning towards them to try them out," says Mark Mahaney, managing director at RBC. "They'll have some patience for a service that isn't a hundred percent. I think people will be somewhat realistic about that. But if in a month or two, if Instacart and Amazon Fresh aren't able to get their act together, you're going to have a lot of people who'll have tried to service, found it wanting and will go right back to the grocery stores."

Check out the video above for more on the growth of online grocery delivery and how the sector may fair after the virus recedes.

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The Rise Of Grocery Delivery
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The tip system must end. Pay a living wage, don't engage in or encourage corporate slavery

William-Morey-Baker
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The issue with tips, is that when they become normal in a society you kind of justify a low basic income

rbd
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Here we go again with businesses passing the burden of paying their employees a living wage to consumers with tips. Sick country.

remoir
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After quarantine: *The Fall of Grocery Delivery*

orangelightin
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I'm still impressed that there is demand given that most grocery items on the app are inflated by 30 percent

edboysega
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Instacart pays their shoppers pennies. It's disgusting how little they pay. It doesn't matter if it's a huge club store order or a small drug store order. I've seen orders as large as 50 items from Costco or BJs paying the shopper only $8. And if the customer has a generous initial tip, instacart barely pays anything regardless of the order size. The customer also has the option to alter or all out remove the tip up to 3 days after the delivery. The company is horrible.

moraldanger
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America's tipping culture is so strange.

SquizzMe
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"Optional tips". That's exactly why I stopped working with them because their lack of respect for their shoppers. If you have someone doing a service for you, especially something as tedious as grocery shopping no tip should be "optional" and they should not be allowed to alter it after your work is complete. I found a lot of shoppers that would accept batches with 50 60 items for $7 no tips and that's fine for them, but I refuse to work myself and my car to death for pennies. Especially having a 5 star rating

starchikify
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ALSO THIS PAY ISN'T REAL. My last shift was $3 an hour. Ethics nightmare.

ashleyjlovesthepnw
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You shouldn't be able to take back your tip 🤦🏼‍♂️ that's just messed up. Why does Instacart allow that...

Ari-luve
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My issues with these Ecommerce independent contracting jobs is that these are slave wages. You have zero benefits. Your car breaks down that's all on you. There is zero protection for be independent contractor. And this is how these companies make their millions that translate into billions. If these jobs are going to grow we need to demand at least bare minimum minimum wage. That's for everybody. Whether you're preparing for pickup or you're delivering. This is how they're getting away with this. I'm not excited about growth in this industry when I know it is built off of desperations of people needing work and slave wages. This is not a good thing. There's going to be more people receiving government assistance while employed than ever before because of these types of jobs.

grimsoul
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Wait, why they work only on tip basis??? is a cultural thing in the US? why businesses are not charging the right amount and leave the pay to the good will of people?

linayucuma
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Someone needs to do a story about what instacart plans on doing about the bots stealing all the high paying batches and selling them. So for us shoppers that have been doing this long before the pandemic r getting screwed.

heatherbreedon
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People really soulless yanking tips away. I think they might be telling the truth though that it’s a minority, Usually I would tip a normal amount & then if the service is above and beyond I would go in and add an extra tip but I barely use these services I prefer actually shopping myself or ordering directly with the restaurant so the tech company doesn’t rob them of the profits with 30-60% fees.

ColesWorldofEDM
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I don't understand why people wear gloves.
They still touch everything and don't change their gloves very often, right?

kongkong
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Call me old fashioned but I like picking my own fruit & vegetables

TheWealthGenerator
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Yesterday I tipped my instacart guy $30. He brought much needed groceries and spiked seltzer!

tiffanys.
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I am an older adult. I am so thankful for the Instacart shoppers! The fees, tips, and higher grocery prices for customers does mean that I will buy less groceries.

ithacacomments
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My wife and I have tried Instacart three different times with different results each time.
The last time the Shopper shopped for our groceries But Never delivered. I had to dispute this and the customer service is really bad. I did get reimbursed eventually

PhilFeedback
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Stratford Politics are interfering with Ct Instacart. Where is the Fairfield County Courthouse in Bridgeport?

MarkVerrante
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