Consumers who buy products from sponsoring brands can receive discounts on Instacart’s delivery service.
(Bloomberg)—Online shoppers hate paying delivery fees. So Instacart Inc. is getting Pepsi to foot the bill.
The grocery delivery startup is working with General Mills Inc., Nestle SA, PepsiCo Inc., Unilever NV, and other consumer goods makers to cover the cost of delivery or provide other discounts when customers buy their products. In addition to the coupons, the companies pay Instacart to advertise on its website. Since introducing the program about six months ago, it now accounts for 15% of Instacart’s revenue, said Apoorva Mehta, the company’s chief executive officer.
