Instacart, popular grocery delivery start-up, has increased its transparency by allowing users to see how much they’re paying in comparison to what they’d pay directly at the grocery store.
The app has gained much popularity as it delivers groceries to users, usually within an hour. In New York, for example, the app can be used for purchases at Costco, Whole Foods, or Fairway.
The change comes on the heel of the app’s price model shift. Initially, it relied on food mark-ups as a revenue stream. Now however, it has begun signing deals directly with grocery stores, earning a cut on the business it brings to the chains.
“One of the reasons that people use Instacart is because a lot of the prices have been the same as in the store and they can just pay a delivery fee,” the app’s chief executive, Apoorva Mehta told Re/code. “What we’re doing is making sure that everyone is aware of which stores are like that so they can make more informed decisions themselves.”
Regardless of its increased popularity, Instacart, which is valued at almost $2bn, faces much competition from tech giants like Google and Amazon that are experimenting with grocery delivery.
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