Instacart Slashed Its Minimum Order—And Members Started Shopping More Often | Global News Avenue

Instacart(cart) Want to get more orders on the door. Its strategy? Cut the minimum.

Spokesman Kristin Chasen said the delivery company lowered the minimum basket size for Instacart+ members from $35 to $10 ahead of Thanksgiving. CFO Emily Reuter said at a Morgan Stanley meeting on Tuesday that the move has helped to improve use.

“We[start]see that helping to increase the frequency of total orders,” Reuters said, according to a transcript provided by Alphaense. “We are always looking for ways to try to make members more attractive.”

Instacart said in a letter to shareholders last month that the new policy allows members to use Instacart when they “need only one or two items.” This also lowers the price that competitors give up delivery fees for those who plan to pay members, the letter said.

Instacart+ subscription service is approximately $10 per month (or $99 per year) and is exempt from delivery charges for grocery and retail orders of $10 or more, as well as Costco (cost) and restaurant orders are at least $35. (Chasen said customers who do not have membership will charge these delivery fees.

Target(TGT) Circle 360 ​​offers free, same-day delivery for orders of $35 or above. Walmart (WMT) Plus offers at least $35 when members are free to deliver; Many users pay more to speed up items. Amazon (Amzn) Prime is expedited with orders of any size. For around $10 a month, Prime members can waive delivery fees on grocery orders that are at least $35 a month.

According to its shareholder letter, Instacart had 77.5 million orders in the last quarter of 2024, an increase of 11% year-on-year. The company did not provide membership figures, but reported a 10% increase in total revenue year-on-year, with net revenue reaching $148 million, an increase of nearly 10% from the fourth quarter of 2023.