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Paying a contractor to have an employee drive to a grocery store, pickup $435 worth of groceries, drive them to you, unload them, then drive home would reasonably run $100. Many professional companies will charge that or more for 1-2 hours of employee time.
I think her issue isn't that she's paying more via fees and tips. It's that the store is charging her more for every individual item. One would expect to pay the shopper and delivery person for their effort. But realizing that the store is capturing most of that AND charging you more for every item on top of it seems to be the problem. The shopper, delivery person and the buyer are all getting shafted.
We've got a grocery store here in Canada launching a 'groceries Prime' subscription of $100 a year. As part of the marketing push they say you'll "pay in store prices, no hidden fees" on pick up orders, beat in mind they use their own staff for this, no outside shoppers or third parties involved. The implication I take from the ad being when I use their online grocery order app they are already charging me different prices, and hidden fees.
Here is the ad from my inbox.
In the US, lots of stores are doing free curbside pickup on your orders, their employees pick it and bring it out to your car, in-store prices, no additional fees.
I do pickup at my local ShopRite. Costs $4.99 unless you spend over $100 in which case it’s free. Saves me a ton of time and shopping via their app helps me find deals I might not find otherwise in a packed store.
I mean it implies that you pay a premium for them to send someone around if you do it on a per case basis... or you can pay a flat fee. Theyre betting most people that subscribe at the flat fee will not have run up more than $100 in extra margin.
This seems reasonably justifiable, considering groceries is one of the shittiest margin businesses and labor isn't free.
This is a Canadian grocery chain called Loblaws, yes the very same Loblaws who had to pay out for price fixing on bread recently. The same who increased their profits to record levels this year and the same who replaced most of their checkouts with self checkout machines. You'll excuse me for not worrying about their margins while they hide fees on pick-up shoppers and try to market price transparency as a perk of membership.
Price transparency should be included for everyone.
Help your fellow canucks out and tell us who’s doing this! I’m happy to save myself some sanity and not attend the weekly superstore circus.
Just to clarify, the majority of those markups are actually imposed by Instacart and not "the store" for what it's worth.
But it's not an employee, and they're not getting the $100. It's an independent contractor gig worker getting a fraction of that and the rest is going to a vampire.
"General Contractor" doesn't mean someone that does random tasks on their own, that's a "handyman".
General contractors usually just hire people to do the work and then pocket most of the money...
I think you may have replied to the wrong comment
When you hire a general contractor and they send someone out, that individual at your house doesn't get the $100 either. They are only going to get that if you hire a handyman directly. And yes, if you hire someone directly to pickup your groceries, you can hand them $100 directly as well.
Just a heads up, General Contractor is a term for someone who oversees contract construction projects, e.g., remodeling your kitchen. They're licensed and insured (usually) professionals.
I'm waiting for the day all these shitty delivery services come crashing down. But sadly I think there's enough idiots out there to keep them in buisness.
That said these practices aren't unique. Almost any place where you buy X + a service will charge a markup on the initial item + their service fee.
They were nice at the height of COVID but once the first vaccine came out and masks were required I saw no point in them. A $25 food order costs $50 and takes twice as long as take out with a bonus of the delivery person possibly molesting or stealing your food.
I think they'll eventually just consolidate into one company. The demand for grocery delivery is there, so the service isn't going to disappear.
Am idiot, still use Instacart though because it saves me at least an hour a week (probably closer to two hours after accounting for shopping time and getting ready to leave) for $20, which is worth it to me
That's life.
I pay a person to clean my house every two weeks. Totally worth it.
There are still people out there who believe everybody should still stay home due to covid. These services aren't going anywhere anytime soon.
Not going that route, but covid quarantine definitely showed me how much time I can save by having someone else do my grocery shopping for me.
My grocery store has an annual membership of $100 which includes same day pick up and next day delivery (in a refrigerator truck), among other benefits. Grocery shopping is done on my couch in a fraction of the time. While handling 2 toddlers, that benefit is well worth it to our household
Saved you a click: customer paid $514 for $435 worth of groceries, not including fees and tip. $79 is "almost $100" and is about a 16% markup
I used Instacart through the pandemic until vaccines were available. I knew about the markups, but couldn't easily figure them out. -That's not the problem I have with Instacart.
The big problem is their ability to leverage a discount from the store, which is even harder to figure out (outside of hearsay). -This makes it far more difficult for personal shoppers to compete on their own, or for customers to acquire a quality personal shopper they can rely on for a competitive rate.
Wait until she finds out about the Uber/Doordash higher prices.
Same on GrubHub. Individual item markup of 1 or 2 dollars each, delivery fee, and 10% service fee (on the sum of order + delivery fee + taxes). So what would be 20 in store becomes something like 25 (food) + 1.50 taxes + 4 delivery fee + 3.05 service fee, then tipping on that 33.55 which brings what should have been 20-22 dollars as pickup (or 28 pickup through GrubHub) up to 38-40 dollars minimum. Damn near double
If you want to see it easily, check the Chipotle app. They contract their delivery, so if you change menu from pick-up to delivery, you can see before your eyes how much it's marked up.
My wife and I used to argue about getting Chipotle delivered when it's less than a mile from our house. I'll gladly go pick it up and save the $10-15
This is the best summary I could come up with:
Shoppers, the term Instacart gives to the gig workers that fulfill orders, are then prompted to slide a button on-screen to acknowledge the requirement.
One shopper in Oregon told Insider that the receipt policy prevents customers from seeing how much more they pay for items by ordering through Instacart.
TikTok user vane.ssota posted a video last month showing her paper receipt from an Instacart order from a Ralph's grocery store in California.
Another Instacart shopper in Virginia recalled a recent order where packs of soda were on sale at a grocery store.
In North Carolina, another Instacart shopper told Insider about a recent trip that involved buying an expensive bottle of wine.
The shoppers Insider spoke with said they don't get a cut of any service fees or item markups in their pay.
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Don’t let the culture drive you, you do you.
I don't see why not. :)
You don't even need to order to see the difference if your local grocery store also delivers. I was curious one day and brought up my local grocery place in one tab, Instacart in the other, and realized I was spending a significant amount more on markups alone using Instacart, not even including delivery charge and tips.
