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Is it time for retailers to reconsider Instacart?

December 30, 2020

Instacart’s ability to enable grocers to quickly implement or scale up delivery operations has been critical to meeting unprecedented demand throughout the pandemic, but some grocers are finding a weakness in the relationship — they’re not making any money.

While Instacart partnerships can increase revenues, the commission that Instacart charges — often amounting to more than 10 percent of every transaction — has been cutting into grocers’ margins to the extent that some don’t feel that they are making any profit on Instacart customers, according to The Wall Street Journal.

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